Danish central bank raises interest rate (but it’s still negative)
The Danish central bank has raised one of its key interest rates – but it's still in the negative.
The bank said today it was hiking its deposit rate to minus 0.65 per cent, up from minus 0.75 per cent. It's not exactly earth-shaking – but it is one of the first European central banks to raise rates in months.
The news comes days after the central bank admitted that in December it sold DK49.6bn (£4.9bn) of foreign currency reserves in an attempt to maintain its peg to the euro.
The bank held its lending rate at 0.05 per cent and its current account rate at zero per cent, suggesting that when it comes to monetary tightening, baby steps are the thing.