Bundesbanker sees 'room for a cut'

Ernst Welteke, president of the central bank of the German state of Hesse, said the Bundesbank has "room for a cut" in its discount and Lombard rates.

In a radio interview, Mr Welteke, who is also a member of the Bundesbank central council, said: "The development of money supply and consumer prices and currency fluctuations will all influence the bank's decision on whether to cut rates. But there is room for a cut in rates."