SP500207 TIPSTER Panel -- DR LINK's Linguistic-Conceptual Approach to Document Detection chapter E. Liddy S. Myaeng National Institute of Standards and Technology Donna K. Harman HEADLINE West Germany's Central Bank Cuts Key Rate: Little Impact Is Expected On Currency Markets Or Nation's Economy LEAD The West German central bank, as expected, cut the interest rate it charges on securities-repurchase agreements with banks, a move that appears likely to fall short of its goal of supporting the dollar by widening the gap between German and U.S. interest rates. MAIN The Bundesbank yesterday called for interest-rate tenders on 28-day securities-repurchase agreements at a minimum rate of 3.5%, well below the 3.8% rate it had been asking since January. EXPECT. EXPECT. Market experts estimate that the actual rate to emerge from bidding today is likely to be closer to 3.6% or 3.65%. But they expect the Bundesbank to use later tenders to continue to push the rate lower, possibly to 3.3%. DEFIN. The repurchase facility is the central bank's principal open- market means for refinancing the banking system with funds backed by securities. Yesterday's Bundesbank action signals broad declines in capital-market interest rates, and could lead to lower credit rates charged by commercial banks. EXPECT. MAIN The West German move complements a recent lowering of short- term interest rates in Japan and a tightening of credit by the U.S. Federal Reserve Board. MAIN However, foreign-exchange traders said the Bundesbank's action didn't have any immediate effect on the currency market and that small interest-rate movements are unlikely to significantly outweigh other factors weakening the dollar, including the U.S. trade deficit. Fiq. 4: Wall Street Journal article Relevant to T.S. 8 122