Europe and Japan are unlikely to cut interest rates.

European central bankers said expectations of a new round of coordinated interest rate cuts this month have faded in view of the better-than-expected economic performance of West Germany and a fall in the U.S. unemployment rate. Meanwhile, Japanese Finance Minister Kiichi Miyazawa said Japan will try to increase economic growth but had not agreed to U.S. requests to trim interest rates. The Reagan Administration has been pressing the West Germans and the Japanese for a rate cut soon to stimulate their economies and help reduce the massive U.S. trade deficit.