Denmark Set to Match Expected ECB Rate Cut, Economists Say
- Nationalbanken seen keeping 40 basis-point spread to ECB
- Danish central bank’s mandate is to defend krone’s peg to euro
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Denmark’s central bank is set to match an expected rate cut by the European Central Bank next week, in what would be the first reduction in almost three years for the Nordic country that pioneered negative rates back in 2012.
All six economists polled by Bloomberg News predict Nationalbanken will lower its current account rate to 3.35% from 3.6% at 5 p.m. in Copenhagen on Thursday, granted its European counterpart reduces its policy rate by the same 25-basis-point margin earlier in the day.