简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Abstract:Denmark’s central bank raised its key interest rate by 0.5 percentage points to minus 0.1% on Thursday, following a rate hike earlier in the day by the European Central Bank (ECB).
“The interest rate increase is a consequence of the increase by the European Central Bank of its main monetary policy rate,” the central bank said in a statement.
The monetary policy spread to the euro zone will remain unchanged, it added.
Unlike most central banks, Denmark does not adjust rates to control inflation. Its sole mandate is to keep the crown currency within a narrow exchange rate band against the euro, an objective it upholds through currency interventions and interest rate moves.
The move could also help dampen the countrys overheated economy, characterised by low unemployment, high private consumption and a strong housing market.
“This will have great significance for the Danish economy and especially the housing market, where we expect higher interest rates to result in falling prices during the autumn,” said Soren Kristensen, chief economist at Sydbank.
Denmarks largest bank, Danske Bank, said it would raise the variable interest rate on personal and business customer deposits by 50 basis points as a consequence of the central bank move.
Earlier on Thursday, the ECB raised its benchmark deposit rate by 50 basis points to zero percent, as concerns about runaway inflation trumped worries about growth, even while the euro zone economy is suffering from the impact of Russias war in Ukraine.
The crown has traded above the midpoint of its peg since early 2021, around or below 7.44 crowns per euro, even despite several currency interventions and a rate cut in September last year aimed at weakening the crown.
It did not move following the central bank announcement.
The current account rate, which is the benchmark rate, and the certificate of deposit rate were each raised by 50 basis points to -0.1% from -0.60%, while the lending rate was raised by 30 basis points to -0.05% as of July 22, the central bank said in a statement.
Last month, the Swiss National Bank, known for having the lowest interest rates along with its Danish counterpart, raised its policy interest rate for the first time in 15 years in a surprise move.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
When entering the world of online trading, finding a legitimate broker is essential. However, fraudulent entities like Top First Group often target unsuspecting investors. It is suspected that this company operates under false pretences, drawing in traders with attractive promises but raising significant concerns.
The Securities Commission Malaysia (SC) has issued an updated Investor Alert List for September, highlighting unauthorized websites, investment products, companies, and individuals involved in unregulated financial activities.
TD Securities was fined $15M for manipulating the U.S. Treasury market through an illegal spoofing strategy. SEC and DOJ impose penalties for broker-dealer failures.
This article highlights the importance of demo accounts in trading, emphasizing their role in helping traders practice strategies, build confidence, and understand market dynamics without risking real capital.