25 Apr 2014
No more negative rates in Denmark- Danske Bank
FXStreet (Edinburgh) - According to Morten Helt, Senior Analyst at Danske Bank, rates in Denmark are back to the positive side since yesterday.
Key Quotes
“Yesterday, Danmarks Nationalbank increased the rate on certificates of deposits by 15bp to 0.05% and thus ended the period of negative interest rates in Denmark. The remaining policy rates were left unchanged”.
“Following the return to a positive rate on certificates of deposits, the current account ceiling was reduced to DKK38.5bn from DKK67.4bn”.
“The move follows the recent weakening of the krone on the back of increased negative carry on short EUR/DKK positions, which the central bank at first hand has tried to curb through intervention in the FX market”.
“The recent action by the central bank will likely be sufficient to bring back EUR/DKK to a more comfortable level closer to the central rate”.
Key Quotes
“Yesterday, Danmarks Nationalbank increased the rate on certificates of deposits by 15bp to 0.05% and thus ended the period of negative interest rates in Denmark. The remaining policy rates were left unchanged”.
“Following the return to a positive rate on certificates of deposits, the current account ceiling was reduced to DKK38.5bn from DKK67.4bn”.
“The move follows the recent weakening of the krone on the back of increased negative carry on short EUR/DKK positions, which the central bank at first hand has tried to curb through intervention in the FX market”.
“The recent action by the central bank will likely be sufficient to bring back EUR/DKK to a more comfortable level closer to the central rate”.