Denmark’s central bank is set to match the European Central Bank and raise its benchmark interest rate by 25 basis points later on Thursday, according to economists surveyed by Bloomberg News.
(Bloomberg) — Denmark’s central bank is set to match the European Central Bank and raise its benchmark interest rate by 25 basis points later on Thursday, according to economists surveyed by Bloomberg News.
Nationalbanken, which doesn’t hold scheduled meetings and ties its krone to the euro, will probably hike its current account rate to 3.6% from 3.35% at 5 p.m. Copenhagen time, all seven economists said.
The Danish central bank has followed all of the ECB’s previous nine rate hikes over the past 14 months. On two occasions, it has raised rates less than the ECB in order to weaken the krone. But since then, the krone has depreciated and now trades around its central parity to the euro.
“We don’t expect the Danish central bank to deviate from the ECB because there’s no pressure on the krone,” Tina Winther Frandsen, chief analyst at Jyske Bank A/S, said by phone. “We have seen that the central bank hasn’t intervened in the currency market in a long time now.”
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