German rates

[Simianer@xxxxxxxxxxx (Simianer)]

Hi Mark and all,

> I've also heard it said that Germany is trying to raise rates (can
> anyone confirm this?).  

This seems to be a rumor due to the very strong $ during the last weeks.
The German Bundesbank declared to be happy with the DM/$-relation when the $ was at DM 1,70.
Presently it is about DM 1,80 and so some guys expect the Bundesbank to raise rates to give
some support to the DM. 

But: German economy is still weaker than expected (except export industries), inflation is 
very low. But the most important point: Unemployment rate of nearly 11.5%. So I think, it 
would be very hard for the Bundesbank to justify a raise of rates in a moderate economic 
scenario facing millions of unemployed people.

I donīt believe in a raise during the next week - but I donīt know, if the Bundesbank is 
interested in my believes! ;-)

Greetings from Germany

        Thomas