To take account of the greater volatility of short-term monetary developments, the Deutsche Bundesbank also decided to widen the target corridor for M3 growth in 1996 from 2 to 3 percentage points. Furthermore, due consideration was given to the information contained in supplementary indicators of future inflation. The downward movement of German official interest rates was mirrored in several other EU countries. The strength of the Dutch guilder allowed De Nederlandsche Bank to maintain its key interest rates somewhat below their German equivalents throughout the year. Money market rates in Austria remained closely linked to those in Germany, consistent with the strong focus on maintaining a stable relation between the schilling and the Deutsche Mark.
Monitoring ranges for the United Kingdom.
Retail price index excluding mortgage interest payments. If the announcement of regular rate of supply of liquidity is suspended, the interest rate corresponds to the rates on occasional operations. During the year the Belgian three-month interest rate spread over Germany fluctuated in a narrow range around zero. Following the strengthening of their respective currencies within the ERM, the central banks of both Denmark and France gradually brought their official rates down to levels not far above those in Germany, the Netherlands, Austria and Belgium. From October onwards, money market rates stood virtually in line with those in Germany.