Denmark raises rates to maintain euro peg
National Bank of Denmark increases rates by 50bp as inflation rises to highest level since 1983
The National Bank of Denmark increased the country’s policy rate by 50 basis points, to -0.1%, on July 21.
This was a direct response to the European Central Bank’s 50bp hike on July 20, the first since 2011. The raise means that “the monetary policy spread vis-à-vis the euro area will remain unchanged”, the Danish central bank said in a press release.
Denmark pegs its currency to the euro at a band around Dkr7.46 to €1, with a permitted fluctuation of no more than 2.25%. It has changed its
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