Copenhagen - Denmark's central bank on Monday lowered its lending and
deposit rate by 0.15 percentage points, in a surprise move taken in the
wake of the Swiss decision to stop supporting a minimum exchange rate
with the euro.
The Danish central bank's new lending rate, effective as of Tuesday, is 0.05%, while the deposit rate is minus 0.20%. The negative rate means that banks have to pay money for keeping deposits with the Danish central bank.
Foreign currency has flowed to Denmark, strengthening the krone as a result of the Swiss decision.
Denmark is a member of the European Union, but not a member of the eurozone. Nevertheless, the Danish central bank usually shadows decisions by the European Central Bank (ECB).
Analysts had not anticipated any changes in Danish interest rates until Thursday, when the ECB is scheduled to announce its own rates decision.
The Danish central bank's new lending rate, effective as of Tuesday, is 0.05%, while the deposit rate is minus 0.20%. The negative rate means that banks have to pay money for keeping deposits with the Danish central bank.
Foreign currency has flowed to Denmark, strengthening the krone as a result of the Swiss decision.
Denmark is a member of the European Union, but not a member of the eurozone. Nevertheless, the Danish central bank usually shadows decisions by the European Central Bank (ECB).
Analysts had not anticipated any changes in Danish interest rates until Thursday, when the ECB is scheduled to announce its own rates decision.