National Bank of Denmark heads deeper into negative territory
Rate cut seeks to defend peg as krone rises
The National Bank of Denmark today cut its headline lending and deposit rates outside of its usual monetary policy meeting schedule.
The krone, which is pegged to the euro in a band of 7.46 plus or minus 2.5%, has come under pressure in recent months as investors seek a safe haven. The movement increased in the last few days as the European Central Bank (ECB) gears up for quantitative easing (QE).
To lean against this movement, the National Bank cut its headline interest rates 0.15 percentage
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