Danish central bank pushes new deposit rate cut

Copenhagen - Denmark's central bank on Thursday announced its third deposit rate cut of 0.15 percentage points this month, aimed at offsetting an appreciation of the krone.

The new deposit rate is minus 0.50%, effective as of Friday. The negative rate means that banks have to pay the Danish central bank to keep deposits there.

Last week it announced two cuts. The second of those was announced after the European Central Bank (ECB) unveiled a quantitative-easing programme worth €60bn a month, weakening the euro. The krone also fell.

Denmark is a member of the European Union, but has not adopted the euro. The Danish central bank usually shadows decisions by the ECB and its currency is pegged to the euro.

The Danish central bank kept its lending rate Thursday at 0.05%.