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Bundesbank cuts

interest rates

FRANKFURT: The Bundesbank decided Thursday to cut its discount rate from four percent to 3.5 percent and the Lombard rate from six percent to 5.5 percent.

The announcement came after a meeting of the council of the German central bank.

Shortly after the Bundesbank's announcement, the National Bank of Austria said it was cutting its discount rate from 4 to 3.5 percent, effective Friday, while its Lombard rate remained unchanged at 5.25 percent.

That is the first reduction of a key Austrian interest rate since March 31.-AFP