Frankfurt, Thursday -- The Bundesbank held key German interest rates

steady toay and set an unchanged target for money supply next year in

order to ensure non-inflationary economic growth.

The independent central bank said its discount rate would remain

steady at 4.50% and its Lombard rate would stay at 6%.

Its target range for growth in M3 money supply, the main indicator it

uses to track inflation, was set at 4%-6% for 1995, the same as this

year.

''The German Bundesbank will conduct monetary policy in 1995 in such a

way as to ensure that price rises continue to ease and at the same time

to create the monetary conditions for sustained economic growth,'' the

bank said in a statement.