Denmark's central bank cuts interest rates
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COPENHAGEN, Sept 12
Reuters -Denmark's central bank cutits key policy interest rate by 25basis points to 3.10%on Thursday, following the European Central Bank's decision earlier in the day to reduce 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," Danmarks Nationalbank said in a statement.
"Thereby, the monetary policy spread vis-a-vis the euro area will remain unchanged," it added.
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 3.10% from 3.35%, while the so-called lending rate was cut by 25 basis points to 3.25% from 3.50%.
The ECB lowered its deposit rate by 25 basis points to 3.50% in a widely telegraphed move, following up on a similar cut in June as inflation is now within striking distance of its 2% target and the domestic economy is skirting a recession.
(Reporting by Stine Jacobsen, editing by Anna Ringstrom and Terje Solsvik
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