Denmark’s central bank lowered its key interest rate by 25 basis points to 2.10% in March, following a similar move by the European Central Bank (ECB).
This marks the sixth rate cut by Danmarks Nationalbank since June 2024.
The decision ensures that the interest rate difference between Denmark and the Eurozone remains unchanged, maintaining the stability of Denmark’s currency, the krone, against the euro. “The interest rate reduction is a consequence of the reduction by the European Central Bank of its main monetary policy rate, the deposit facility rate, by 0.25 percentage point,” the Danish central bank said in a statement. “Thereby, the monetary policy spread vis-a-vis the euro area will remain unchanged,” it added.
Denmark’s benchmark current account interest rate and the certificate of deposit rate were each cut by 25 basis points to 2.10% from 2.35%, while the so-called lending rate was cut by 25 basis points to 2.25% from 2.50%.