09 October 1997 - International [Germany]

The Bundesbank raised its securities repurchase rate by 30 basis points to 3.3%, stating that the move was in response to recent price increases which had been partly caused by the Deutsch Mark's depreciation. Short-term interest rates also rose in France, Belgium, the Netherlands and Denmark. Following the Ecofin decision on 13/14 September to set conversion rates between the EMU currencies in May 1998 the Bundesbank had signalled that it would set policy with an eye to European convergence, as well as to the German context.