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||-0.22||-1.54 %||Jun 14|
|Exchange Rate||6.66||-0.57 %||Jun 14|
|Stock Market||1,011||-0.39 %||Jun 14|
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June 11, 2019
According to Statistics Denmark, consumer prices decreased 0.1% in May over the month prior, down from the 0.3% rise registered in April.
May 29, 2019
The economy grew a downwardly revised 0.2% in seasonally-adjusted quarterly terms in the first quarter of 2019 (previously reported: +0.3% quarter-on-quarter), according to the latest national accounts data which were released by Statistics Denmark on 29 May.
May 29, 2019
Business confidence among firms in the industrial sector inched up to minus 2 points in May from minus 3 points in April, according to a survey conducted by Statistics Denmark, owing to a slight recovery in news orders and lower stocks.
May 21, 2019
Consumer confidence jumped in May, with the consumer confidence index released by Statistics Denmark increasing to 5.9 points from 3.7 points in April.
May 15, 2019
GDP grew 0.3% in seasonally-adjusted quarter-on-quarter terms in Q1 2019, down from the 0.8% increase registered in the fourth quarter last year, according to a flash estimate released on 15 May.