NAKASONE, SUMITA AGREE RATE CUT NOT APPROPRIATE
Prime Minister Yasuhiro Nakasone today
agreed with Bank of Japan governor Satoshi Sumita that a
further cut in the discount rate was not appropriate at
present, central bank sources said.
    They told Reuters the two discussed the subject at a
routine meeting.
    Sumita told Nakasone he did not feel a rate cut was
appropriate and Nakasone expressed his understanding, the
sources said.
    Currency dealers have speculated that Japan and West
Germany might come under pressure at next week's Venice summit
to cut interest rates to boost their economies.
    Nakasone, but not Sumita, is due to attend the summit.
 REUTER
