Latest News

Denmark’s central bank raises key rate to 2.1%

Denmark’s central bank raises key rate to 2.1% By Reuters

Breaking News


Economy 28 minutes ago (Feb 02, 2023 16:38)

© Reuters. FILE PHOTO: Denmark’s Central bank sign is seen on a bank’s headquarters in Copenhagen, Denmark October 22, 2019. REUTERS/Nikolaj Skydsgaard

COPENHAGEN (Reuters) – Denmark’s central bank raised its key interest rate by 35 basis points to 2.1% on Thursday, following a rate hike earlier in the day by the European Central Bank.

Earlier on Thursday, the ECB raised its benchmark deposit rate by 50 basis points to 2.5% and signalled a further hike in March.

Unlike most central banks, the primary mandate of the Danish central bank is to keep the crown currency stable versus the euro under a fixed exchange rate regime, a task it fulfils by intervening in the currency market and changing rates.

“The widening of the monetary policy spread vis-à-vis the euro area follows Danmarks Nationalbank’s purchases of foreign exchange in the market,” the central bank said in a statement.

By implementing a smaller rate hike than the ECB, the central bank aims to limit a further strengthening of the crown.

“The crown is strong at the moment, and therefore a larger interest rate spread has been necessary,” Totalkredit’s chief analyst Sune Malthe-Thagaard said in a note.

Denmark, the first country in the world to impose negative rates in 2012, broke with the decade-long experiment in September when it lifted its key rate into positive territory.

Denmark’s current account rate, which is the benchmark rate, and the certificate of deposit rate were each raised by 35 basis points from 1.75% to 2.1%. The lending rate was also raised by 35 basis points to 2.25% from 1.9%.

Denmark’s central bank raises key rate to 2.1%

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning

© 2007-2023 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

What's your reaction?

In Love
Not Sure

You may also like

More in:Latest News

Leave a reply

Your email address will not be published. Required fields are marked *