The central bank raises the key interest rate

the central Bank has on Thursday afternoon decided to raise the key interest rate by 0.15 percentage points. It informs the national Bank in a press release.

The central bank raises the key interest rate

the central Bank has on Thursday afternoon decided to raise the key interest rate by 0.15 percentage points. It informs the national Bank in a press release.

Ann McDonald
Ann McDonald
19 mart 2020 Thursday 13:00
8 Reads
The central bank raises the key interest rate

the central Bank has on Thursday afternoon decided to raise the key interest rate by 0.15 percentage points.

It informs the national Bank in a press release.

the Increase has effect from Friday, and the interest rate is raised thereby to minus 0.6 percent.

the Change of interest rates occurs against the background of sales of the currency, says the message.

- Increase narrows the monetary policy spread to the euro area by 0.25 percentage point to 0.10 percentage points, but the Danish monetary policy interest rates remain lower than in the euro area, writes the bank.

The other monetary policy interest rates are maintained.

the Reason for rentehævningen is, according to the chief economist at Danske Bank Las Olsen, the Danish krone has long been weak compared to the euro.

- The latest days of financial turmoil has reinforced the pressure, and now grabs the national Bank and that a rate hike, said Las Olsen said in a written comment.

- the Pressure due to the hardly, that Denmark would be harder hit than so many other of coronakrisen, but in extreme crises, there is a tendency for small currencies are being squeezed, he says.

the chief competition economist highlights among other things the Swedish krona as an example of a less currency, there has been pressure.

If it just stays at this one rate cut, it is not something that really affects the economy, points out, Las Olsen.

Due to coronakrisen have the financial markets has fluctuated a lot.

It has according to the chief economist at Arbejdernes Landsbank Jeppe Juul Boore led several central banks to lower interest rates in an attempt to give a helping hand to economies that are hit by the virus.

- Increase comes as a result of a svækkelsespres on the crown opposite the euro and not to tighten monetary policy as such, he says in a written comment.

One of the currencies, which has been pressed is the Norwegian krone. It has been sent completely in the floor, among other things because of a falling oil price, due to coronakrisen.

on Monday, the national Bank announced, that year will be issued sovereign debt of 125 billion dollars and not 75 billion as previously planned. It happens because of coronakrisen.

A bond is basically a way in which the state can record a loan.

Updated: 19.03.2020 13:00
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