Denmark: Nationalbanken raised the deposit rate to -0.6% – Nordea

Danmarks Nationalbank has decided to raise the deposit rate by 0.15 percentage points to -0.6%, Helge J. Pedersen, an economist at Nordea reports. EUR/DKK is trading at 7.473.

Key quotes

“In the wake of the severe turmoil in the financial markets and pressure on the Danish krone, Danmarks Nationalbank has decided to raise the deposit rate by 0.15 percentage points to -0.6%.”

“It should strengthen DKK. It should be remembered that Danmarks Nationalbank's only mandate is to secure the fixed exchange rate against the euro.”

“Danmarks Nationalbank has chosen to extend the temporary lending facility in order to increase the access of cash and mortgage banks to liquidity during a difficult time and at the same time contribute to support a well-functioning bond market.”