Danes cut rate to combat strong krone

Denmark’s central bank has cut the lending rate from 1.25 per cent to 1.20 per cent and reduced the current account rate by the same amount, to 0.85 per cent. The bank has also cut rates on certificates of deposit from 1.00 per cent to 0.95 per cent, while the discount rate remains the same, at 1 per cent. The bank said the reduction was “a consequence of purchases of foreign exchange in the market”. The spread between ultra-low euro money-market rates and those on the Danish krone have tended to strengthen the currency.

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