Negative Rate Experiment in Denmark Seen Stretching to 2015
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Economists at Denmark’s biggest banks predict the nation’s benchmark interest rate, which has been negative since July 2012, won’t climb over zero until 2015 marking an historic experiment with extreme monetary policy.
Copenhagen-based Nationalbanken, which uses rates together with currency reserves to defend the krone’s peg to the euro, will be anchored in sub-zero territory by crisis measures taken by the European Central Bank, according to economists at Danske Bank A/S, Sydbank A/S and the Danish unit of Svenska Handelsbanken AB. Jyske Bank A/S and Nordea Bank AB see negative rates until the end of next year.