Danish Central Bank cuts rates to lowest in nearly 2 years

Following the European Central Bank (ECB), the Danish Central Bank has decreased its interest rates by 0.25 percentage points, bringing the key deposit rate to 2.35% and the lending rate to 2.5%. This marks the lowest level in nearly two years and will resonate with homeowners’ mortgage rates. The ECB’s earlier reduction of its deposit rate to 2.75%, the fifth consecutive cut since June, is aligned with the Danish policy to keep the krone tied to the euro. Economists from Arbejdernes Landsbank and Danish Industyi anticipate further rate cuts throughout the year, with Danish Industry predicting four additional reductions in 2025. The inflation rate in Denmark is abating faster than the Eurozone, suggesting potential for more rate cuts according to Danish Industry’s economist.