GERMAN MONEY MARKET SPLIT ON LOWER RATE PROSPECTS Remarks by central bankers raised some hopes the Bundesbank will cut rates on securities repurchase pacts, but operators remained divided on the likelihood of a move in the near term, money market dealers said. Comments by Bundesbank board member Claus Koehler yesterday that rate cuts were needed to curb money supply growth from speculative capital inflows, and by West Berlin state central bank president Dieter Hiss that there was no natural lower limit to the discount rate had, however, no immediate impact. Call money declined to 3.65/75 pct from 3.75/85 pct but the drop was tied to extra liquidity in the market, dealers said. Dealers said the Bundesbank's latest liquidity allotment this week dashed some hopes of lower rates. The Bundesbank allotted only 6.1 billion marks yesterday in new liquidity in a repurchase pact at an unchanged rate of 3.80 pct, thus subtracting some 8.8 billion marks from the market, as an outgoing 14.9 billion pact expired. But some dealers said the smaller volume awarded by the pact was in line with present liquid money market conditions, and did not exlude a cut in the repurchase pact rate soon to 3.70 pct if money market rates continue at present levels. The next opportunity for the Bundesbank to lower rates on repurchase pacts will be in a tender expected next Tuesday. Bundesbank officials have already said they favour more discreet rate adjustments through repurchase pacts, rather than the more public adjustment of leading rates. The Bundesbank may either set a fixed allocation rate and allow banks to tender for the volume, as has been the case since it lowered its discount rate January 22, or else it may allow banks to tender for the rate and set the volume itself. Dealers expect volume of the tender to be lower than the 15.2 billion marks flowing out, to offset other incoming funds. Some seven billion marks is expected to flow in next week. This should then flow back into the market as it is deposited with banks. Banks were well supplied with liquidity, holding 61.5 billion marks in reserves at the Bundesbank on Tuesday. Holdings of average daily reserves over the first seven days of April stood at 59.6 billion marks, still above the estimated 51 billion required for all of April.