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||0.16||-1.54 %||Jan 14|
|Exchange Rate||6.51||-0.57 %||Jan 14|
|Stock Market||913||-0.39 %||Jan 14|
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January 10, 2019
According to Statistics Denmark, consumer prices fell 0.3% over the prior month in December, matching November’s dip.
January 4, 2019
According to a survey conducted by Statistics Denmark, business confidence among firms in the industrial sector fell to minus 5 points in December from a revised 0 points in November (previously reported: -1 point), dropping below the zero-point threshold that separates optimism from pessimism in the sector. The tumble in industrial business sentiment was primarily driven by declining new orders.
December 21, 2018
The consumer confidence index released by Statistics Denmark toppled to 2.9 points in December from 4.3 points in November, the lowest level since December 2016.
December 10, 2018
Consumer prices fell 0.3% over the prior month in November, contrasting the 0.3% increase logged in October.
November 30, 2018
According to the latest national accounts data released on 30 November by Statistics Denmark, the economy gained traction in the third quarter, after registering weak growth in the first two quarters of the year.