WORLD RECESSION UNLIKELY - DEUTSCHE'S HERRHAUSEN

  A world recession is unlikely this
  year as fiscal and monetary policy in most industrialized
  countries is supporting the economy, Deutsche Bank AG &lt;DBKG.F>
  management board joint spokesman Alfred Herrhausen said.
      But growth rates will be smaller than last year, with 1.5
  to 2.5 pct likely in most industrialized countries, he told a
  news conference.
      Herrhausen said he was confident private consumption would
  support economic growth in West Germany this year, with net
  income increases turning into purchasing power as long as
  inflation did not revive.
      Herrhausen said he did not expect interest rates to rise in
  West Germany this year, but there was little room for further
  falls. Rates in the U.S. were however rising, as evidenced by
  the latest prime rate moves, but this rise would be moderate.
      Herrhausen said he did not expect any major narrowing of
  the U.S. Trade and budget deficits in the next few months.
      One success of the Paris agreement in February to foster
  currency stability was that U.S. Officials have stopped talking
  down the dollar, he noted.
      The recent stability would last until markets decided to
  test the resolve of central banks, he said.
      He noted that central banks had spent some 10 billion dlrs
  this week to stabilize the dollar against the yen in the first
  such test.
      "A massive attack on the mark, which could come if we get
  bad news out of the U.S., Would require a much higher
  intervention amount, raising the danger of inflation," he said.
      Turning to the international debt problem, Herrhausen said
  Brazil's unilateral debt moratorium had surprised banks.
      But the move showed that a real solution to debt problems
  was only possible with the involvement of all parties.
  

