Christmas Came A Little Early For Europe's Exporters

Before he took the helm at Germany's Bundesbank in October, President Hans Tietmeyer vowed not to be held prisoner by financial markets clamoring for faster interest-rate cuts. But now it looks as if Tietmeyer is giving the market exactly what it wants. The Buba's quarter-point cut in money-market rates on Dec. 2 may be setting the stage for even bigger reductions in coming months. Cheaper German money will cheer such beleaguered allies as France, Spain, the Netherlands, Belgium, and Denmark, which quickly cut their own rates after the Buba's move.

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