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 11 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.
Met the why particular 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 %||Mar 11|
|Exchange Rate||6.63||-0.57 %||Mar 11|
|Stock Market||990||-0.39 %||Mar 11|
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March 21, 2019
Consumer confidence regained some ground in March, with the consumer confidence index released by Statistics Denmark rose to 3.8 points in March from 3.3 points in February.
March 11, 2019
According to Statistics Denmark, consumer prices climbed 0.4% over the prior month in February, up from the 0.2% rise registered in January.
February 28, 2019
According to the latest national accounts data, released by Statistics Denmark on 28 February, the economy grew at a downwardly revised 0.7% pace in seasonally adjusted quarterly terms in the fourth quarter of 2018 (previously reported: +0.8% quarter-on-quarter), accelerating from Q3’s revised 0.4% growth (previously reported: +0.7% qoqsa).
February 27, 2019
According to a survey conducted by Statistics Denmark, business confidence among firms in the industrial sector ticked down to minus 6 points in February from minus 5 points in January, inching further below the critical zero-point threshold that separates optimism from pessimism in the sector. The continued decline in confidence in the industrial sector was largely driven by firms’ less optimistic assessment of production, while stocks of finished goods rose higher in the month.
February 20, 2019
In February, consumer confidence dissipated somewhat, with the consumer confidence index released by Statistics Denmark falling to 3.3 points from 3.9 points in January.