Central Banks
Danish Central Bank Raises Interest Rates to Mirror ECB Hike
- Nationalbanken raises current account rate to 3.6% from 3.35%
- Danish central bank’s key tool is to peg krone to euro
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The Danish central bank hiked its benchmark interest rate, mirroring an increase from the European Central Bank earlier in the day, to protect the krone’s peg to the euro.
Nationalbanken raised its current account rate to 3.6% from 3.35%, it said in a statement on Thursday after ECB also had raised its benchmark by 25 basis points. The match was expected by all seven economists surveyed by Bloomberg News.