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National Bank of Denmark simplifies monetary framework

Central bank aims to reduce excess liquidity effect on money market rates

National Bank of Denmark
Rachael King

The National Bank of Denmark unveiled important changes to its monetary policy instruments on March 11.

“The purpose is to reduce fluctuations in the Danish money market rates resulting from changes in the size and composition of the banks’ deposits and lending at Danmarks Nationalbank,” the NBD said in a statement.

The central bank said the changes were “a technical adjustment”, not intended to influence the level of the money market rates or the Danish krone.

It increased the interest rate

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