German Bank Trims Key Interest Rates

The Bundesbank cut a half-point off Germany’s two main official interest rates Thursday, giving an initial boost to the U.S. dollar and pleasing German government officials who hope for stable economic growth.

Hans Tietmeyer, head of Germany’s central bank, said on German television that the Bundesbank was convinced to make the long-awaited move by two signs of moderating inflation - low money supply growth and good consumer price statistics.

The Bundesbank’s policy-making Central Bank Council, at its biweekly meeting in Frankfurt, lowered the benchmark discount rate from 4 percent to 3.5 percent and the Lombard rate from 6 percent to 5.5 percent.