Denmark’s central bank cut its benchmark lending rate and its deposit rate by 15 basis points to ease the upward pressure on the exchange rate of its crown currency, a move that had been expected following Switzerland’s scrapping of its peg to the euro.
The rate cut reduces the Danish lending rate to 0.05 percent and the deposit rate to minus 0.20 percent. The current account rate and the discount rate remain unchanged at 0.0 percent.
The main objective of Danmark’s Nationalbank is to defend the exchange rate of the Danish krone to the single European currency as a way to control inflation. The Danish central bank has a target of keeping the crown at 7.46038 euros, within a tolerance band of plus/minus 2.25 percent.
“The interest rate reduction follows Danmarks Nationalbank’s purchase of foreign exchange in the market,” the Danish central bank said. In the last three months of 2014 the Danish central bank spent some 7 billion crowns to maintain the exchange rate to the sliding euro.
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The rate cut reduces the Danish lending rate to 0.05 percent and the deposit rate to minus 0.20 percent. The current account rate and the discount rate remain unchanged at 0.0 percent.
The main objective of Danmark’s Nationalbank is to defend the exchange rate of the Danish krone to the single European currency as a way to control inflation. The Danish central bank has a target of keeping the crown at 7.46038 euros, within a tolerance band of plus/minus 2.25 percent.
“The interest rate reduction follows Danmarks Nationalbank’s purchase of foreign exchange in the market,” the Danish central bank said. In the last three months of 2014 the Danish central bank spent some 7 billion crowns to maintain the exchange rate to the sliding euro.
Read More....Click Here / http://trade4x.net/
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