Trump win may increase Danish mortgage costs

Danish homeowners have a stake in the outcome of the US presidential election as it could influence mortgage rates in Denmark, according to economists. A victory for Donald Trump could lead to higher interest rates if his policies, such as increased spending that could raise public deficits including tax cuts, are implemented. This potential fiscal approach might boost growth, price pressure, and inflation, limiting the US Federal Reserve’s room to cut rates. Such an increase could affect Danish homeowners with fixed-rate loans, who benefit from falling rates for opportunities to convert to lower rates. American economic policy generally directs the global economic climate and therefore global interest rates. Søren Kristensen, chief economist at Sydbank, also points out that Trump’s higher tariffs and plans to deport immigrants could result in increased inflation. Conversely, both economists predict that rates could fall if Democrat Kamala Harris wins, although this also depends on the distribution of power in Congress.