Denmark’s National Bank further cuts rates

Following the European Central Bank (ECB), Denmark’s National Bank has reduced its interest rate by 0.25 percentage points, maintaining the unchanged monetary policy spread. The rates, effective from December 13, will be 2.60% for current account deposits, the deposit rate, and the discount rate, and 2.75% for the lending rate. This action marks the fourth time Denmark has mirrored the ECB’s rate adjustments this year, beginning in June, with subsequent cuts in September and October. The decrease did not surprise economist Brian Friis Helmer, who noted this is typical due to Denmark’s fixed exchange rate policy with the euro and brings relief to homeowners with variable-rate mortgages. Nordea’s Chief Economist, Helge J. Pedersen, anticipates further ECB rate cuts early in 2025, potentially leading to additional Danish reductions.