Denmark Cuts Interest Rate Back to Record Low Tracking ECB Move

Denmark cut its key interest rate back to its historical low, mirroring an earlier move by the European Central Bank as it seeks to defend the currency peg, Bloomberg News reported. The 10 basis-point cut brings the nation’s deposit rate to minus 0.75% and increases the likelihood that Denmark’s experiment with negative rates will last for more than a decade. It also ends the longest period of unchanged rates in Denmark -- 3 1/2 years -- since the krone was anchored to the euro, in 1999. “The interest rate reduction is a consequence of the reduction by the European Central Bank of its monetary policy rates by 0.10 percentage point,” the central bank said in a statement. The decision was anticipated by four of the five economists surveyed by Bloomberg and follows ECB Governor Mario Draghi’s announcement in Frankfurt of a further cut below zero of eurozone interest rates and a new round of open-ended bond buying. Read more