BELGIUM CUTS TREASURY CERTIFICATE RATES
The Belgian National Bank said it cut
one, two, and three month treasury certificate rates, all by
0.10 points, effective immediately.
    The cuts take the one month rate to 6.75 pct, the two month
rate to 6.80 pct and the key three month rate to 6.85 pct, the
central bank said in a telex.
    A National Bank spokesman said the modest cut was made
after a decline in domestic money market rates yesterday, and
was not expected to be followed by a cut in the 7.60 pct
discount rate.
    The short-term treasury certificate rates, and especially
the three-month rate, have been the National Bank's main
monetary policy instrument for the last two years.
    The discount rate has been the market's penalty rate rather
than a guiding rate since 1985, and its advances are currently
little used as liquidity is ample, bank economists said.
    The bank last cut one- to three-month certificate rates on
June 5, also by 0.10 points.
 REUTER
