Money in Denmark

Denmark Money | Economic News & Forecasts

Denmark - Money

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 - Money Data

2013  2014  2015  2016  2017  
Money (annual variation in %)3.2  7.7  11.3  7.5  6.6  

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Denmark Money Chart


Denmark Money
Note: Annual variation of M2 in %.
Source: Statistics Denmark (DST) and Met the why particular calculations.

Denmark Facts

ValueChangeDate
Bond Yield0.04-1.54 %May 13
Exchange Rate6.65-0.57 %May 13
Stock Market974-0.39 %May 13

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