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WORLD : W. Germans Raise Interest Rate

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Associated Press

West Germany’s central bank boosted a key interest rate 0.5 percentage point to help prevent inflation from flaring up. The move sparked speculation that the U.S. Federal Reserve will soon join in, but a top West German official said it shouldn’t be considered part of a coordinated international rate increase.

The Bundesbank raised the Lombard lending rate to 5.5% from 5% effective Friday, but it kept the discount rate unchanged at 3.5%.

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