Speculators Seen Driving Denmark to Test World’s Lowest Rate
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Denmark’s central bank may set a world record in negative interest rates this week as policy makers try to flush out speculators still betting against the krone’s peg to the euro.
The central bank will probably cut its benchmark deposit rate by a quarter of a percentage point to minus 1 percent today, according to Nordea Bank AB, Scandinavia’s largest lender. There’s even a chance Governor Lars Rohde might go as low as minus 1.25 percent to send a clear signal, Nordea said. Danske Bank A/S also predicts a 25 basis-point cut.