Interest Rate in Denmark
Denmark - Interest Rate
Nationalbanken increases deposit rate in January
On 7 January, the Bank of Denmark (Nationalbanken) raised its main deposit rate by 10 basis points from minus 0.75% to minus 0.65%, in an effort to be in tune with the latest moves by the European Central Bank. Nationalbanken kept the lending rate, the discount rate and the current-account rate unchanged at 0.05%, 0.00% and 0.00%, respectively. The change in the deposit rate is intended to defend the local currency and keep it within a pre-established narrow band against the euro (EUR 1 = DKK 7.46038 plus/minus 2.25%). Nationalbanken’s move underlines how deeply the ECB’s movements are felt even in the countries that do not have the euro as their currency.
The Danish Central Bank implemented a negative deposit rate policy for the first time ever in June 2012 amid risks of a Euro area break up. The Bank last changed its main deposit rate in January of last year as a response to the ECB’s massive stimulus package. The negative rates are designed to discourage capital inflows and keep the currency from appreciating further. However, since the ECB’s last meeting on 3 December, the euro has gained some strength against other currencies, including the krone. This has in turn caused pressure on the Danish currency to abate.
FocusEconomics Consensus Forecast panelists see the lending rate at 0.16% in 2016 and at 0.13% in 2017.
Denmark - Interest Rate Data
|Policy Interest Rate (%)||0.20||0.20||0.05||0.05||0.05|
5 years of economic forecasts for more than 30 economic indicators.
Denmark Interest Rate Chart
Source: National Bank of Denmark.
|Bond Yield||-0.15||-1.54 %||Jan 01|
|Exchange Rate||6.66||-0.57 %||Jan 01|
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January 10, 2020
Consumer prices fell 0.2% in month-on-month terms in December, matching November’s print.
January 7, 2020
Business confidence among firms in the industrial sector slipped to minus 7 in December from minus 6 points in November, according to a survey conducted by Denmark’s Statistical Institute.
December 20, 2019
The consumer confidence index released by Statistics Denmark increased to 2.5 in December from 1.4 in November.
December 11, 2019
Consumer prices fell 0.2% in month-on-month terms in November, contrasting October’s 0.4% increase.
November 29, 2019
The economy grew 0.3% in seasonally-adjusted quarter-on-quarter terms in Q3 2019, easing from the 1.1% expansion registered in the second quarter (previously reported: +0.9% quarter-on-quarter), according to Statistics Denmark’s second GDP estimate.