Novo’s Rise Forces Denmark to Keep Rates Lower, Danske Says
- Danske sees direct link between Novo and Danish interest rate
- Danish central bank is mandated to defend krone’s peg to euro
Vials move along a conveyor at the Novo Nordisk A/S production facilities in Hillerod, Denmark.
Photographer: Carsten Snejbjerg/BloombergThis article is for subscribers only.
The success of Novo Nordisk A/S and other Danish drugmakers is forcing Denmark to keep interest rates lower, according to the country’s largest bank.
There’s “a direct link” between the growing role of the pharmaceutical industry and a strengthening krone, which in turn widens the spread between Denmark’s key rate and that of the European Central Bank, Danske Bank A/S said in a note.