Denmark’s Krone Defense Drives Benchmark Lending Rate Lower
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Denmark’s central bank lowered its benchmark lending rate following a cut from the European Central Bank as policy makers in Copenhagen defend the krone’s peg to the euro.
Nationalbanken lowered the lending rate to 0.2 percent from 0.3 percent, it said in a statement today. The deposit rate was held at minus 0.1 percent. The decision followed a 0.25 percentage point cut earlier today by the ECB, bringing the euro area’s main rate to 0.5 percent. Denmark’s central bank doesn’t hold scheduled meetings and only changes interest rates to maintain the exchange rate.