COPENHAGEN – Denmark’s central bank has decided to cut its interest rate on certificates of deposit by 0.15 percentage points to -0.5 per cent to keep the krone currency stable against the euro.
Danmarks Nationalbank says Thursday that the rate reduction will take effect Friday and follows interventions it made in the currency market to keep the krone from rising too much against the euro.
Other key interest rates — the lending, discount and current account rates — were left unchanged.
Denmark is a member of the European Union, but does not use the euro. The central bank typically follows ECB changes as part of a policy of trying to keep the krone stable against the euro. The ECB unveiled a big stimulus plan this month that has weighed on the euro.