COPENHAGEN – Denmark’s central bank has increased a key interest rate by 0.10 percentage points, a move to support the national currency following nine months of market interventions to bolster it.
Nationalbanken said Thursday the interest rate on certificates of deposit would be minus 0.65 per cent as of Friday.
The central bank uses the certificate of deposit rate as a way to maintain the krone’s peg to the euro. Denmark is a member of the European Union, but does not use the euro. A negative deposit rate means banks have to pay to park their cash at the central bank.
It is the first interest rate change in Denmark since February, when the bank cut the deposit rate.
Nationalbanken kept its lending and current account rates unchanged.