Danmarks Nationalbank (DN) has just announced that it is keeping all policy rates unchanged.
The announcement follows the decision by the European Central Bank (ECB) earlier today to cut the refinancing rate by 25bp to 0.25%.
The decision is a bit of a surprise to us, as we expected DN to cut the lending rate by 10bp to 0.10%.
As it is the rate on certificates of deposits which guides short-term money market rates, it is not likely to have any significant implications for the pegged exchange rate policy.
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