Denmark Has Lessons for Draghi as Official Rates Go Negative

As Denmark experiments with official interest rates below zero, European Central Bank President Mario Draghi is getting a glimpse of how extreme monetary policy decisions play out in real life.

Nationalbanken in Copenhagen, which lowered the rate it offers on certificates of deposit by a quarter of a percentage point to minus 0.2 percent on July 5, has become “a test case,” Paul Mortimer-Lee, global head of market economics at BNP Paribas SA in London, said in an interview. “We should take note when our knowledge of this stuff is scarce.”