This is in contrast to the United States Federal Reserve and the Bank of Japan, which left their benchmark rates unchanged.

The Bundesbank left both German benchmark rates unchanged.

The Fed has raised its short-term benchmark rate in 11 quarter-point increments, to 3.75 percent.

As the lowest benchmark rate of Germany, the biggest economic power in Europe, the discount rate influences others.

On Monday, the Federal Reserve, the European Central Bank and other banks reduced their benchmark rates by half a point.

But the next four increases were all at least a half-point, bringing the benchmark short-term rate to 6 percent by early 1995.

In Britain, where the benchmark rate remained at 6 percent, economic indicators suggest that growth is slowing.

In the 11 nations of the euro zone, where the benchmark rate remains at 4.25 percent, growth is forecast around 3 percent.

British benchmark short-term rates are 5.5 percent compared with 3 percent in Continental Europe.

Similar conclusions can be drawn from other potential benchmark rates, including short rated AAA rated corporate bonds of institutions deemed 'too big to fail.'