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||0.42||-1.54 %||Sep 20|
|Exchange Rate||6.33||-0.57 %||Sep 20|
|Stock Market||979||-0.39 %||Sep 20|
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September 11, 2018
Consumer prices fell 0.4% month-on-month in August, contrasting July’s 0.8% increase.
August 23, 2018
The consumer confidence index released by Statistics Denmark dropped from 9.7 points in July to 7.8 points in August.
August 14, 2018
According to a flash estimate released on 14 August, GDP rose 0.3% in seasonally adjusted quarter-on-quarter terms in the second quarter, which if confirmed would mark a deceleration from Q1’s 0.4% increase.
August 11, 2018
Consumer prices rose 0.8% month-on-month in July, contrasting June’s 0.1% decline.
July 31, 2018
According to a survey conducted by Statistics Denmark, business confidence among firms in the industrial sector improved in July.