HELSINKI (Reuters) – Denmark’s central bank cut its key interest rate by 25 basis points to 1.85% on Thursday, following the European Central Bank’s decision earlier in the day to cut euro zone rates.
“The interest rate reduction is a consequence of the reduction by the European Central Bank of its main monetary policy rate, the deposit facility rate, by 0.25 percentage point,” the central bank said in a statement.
The European Central Bank earlier on Thursday cut interest rates for the seventh time in a year, looking to prop up an already struggling euro zone economy that will take a large hit from U.S. tariffs.
The primary mandate of the Danish central bank is to keep the crown currency stable versus the euro, an objective it upholds through currency interventions and interest rate moves.
Denmark’s benchmark current account interest rate and the certificate of deposit rate were each cut by 25 basis points to 1.85%, while the so-called lending rate was cut by 25 basis points to 2.0%.
(Reporting by Essi Lehto, editing by Louise Rasmussen)
