Money in Denmark
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
|Money (annual variation in %)||3.2||7.7||11.3||7.5||6.6|
5 years of economic forecasts for more than 30 economic indicators.
Denmark Money Chart
Source: Statistics Denmark (DST) and Met the why particular calculations.
|Bond Yield||0.04||-1.54 %||May 13|
|Exchange Rate||6.65||-0.57 %||May 13|
|Stock Market||974||-0.39 %||May 13|
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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.
May 11, 2019
According to Statistics Denmark, consumer prices increased 0.3% in April over the prior month, up from the 0.1% rise registered in March.
April 29, 2019
According to a survey conducted by Statistics Denmark, business confidence among firms in the industrial sector inched up to minus 3 points in April from minus 5 points in March, remaining below the critical zero-point threshold that separates optimism from pessimism in the sector.
April 22, 2019
Consumer confidence moderated in April, with the consumer confidence index released by Statistics Denmark ticking down to 3.7 points from 3.8 points in March.