Denmark Cuts Base Rate by 25Bps After ECB Decision

Denmark’s central bank lowered its key interest rate by 25 basis points to 2.10% in March, following a similar move by the European Central Bank (ECB).

This marks the sixth rate cut since June 2024, bringing borrowing costs to the lowest level since February 2023.

The decision ensures that the interest rate difference between Denmark and the Eurozone remains unchanged, maintaining the stability of Denmark's currency, the krone, against the euro.

" Thereby, the monetary policy spread vis-a-vis the euro area will remain unchanged," the Danish Central Bank said in a statement.

Denmark's benchmark current account interest rate and the certificate of deposit rate were each cut by 25 basis points to 2.10% from 2.35%, while the so-called lending rate was cut by 25 basis points to 2.25% from 2.50%.