Danish central bank raises key rate to 0.3%


Published — Thursday 24 January 2013

Last update 25 January 2013 5:18 am

| نسخة PDF Print News | A A

COPENHAGEN: Denmark's central bank yesterday raised its key interest rate by 0.1 point to 0.3 percent, its first rate change since July.
"The interest rate increase follows Danmarks Nationalbank's sale of foreign exchange in the market," it said in a statement.
The central bank gave no further details on its decision, but Danish monetary policy is aimed at maintaining a stable exchange rate between the Danish krone and the euro.
The krone is pegged to the euro through an agreement known as the European Exchange Rate Mechanism (ERM II), under which the Danish currency can only move 2.25 percent up or down from a fixed rate of 7.46 krone per euro.
The rate hike comes a week before central bank head Nils Bernstein turns 70, the retirement age for Danish central bank governors.
He will be replaced by Lars Rohde, who is currently the chief executive of ATP, Denmark's biggest pension fund.
The change comes into effect on Friday.
The central bank also raised the deposit rate by 0.1 point to -0.1 percent.
The deposit rate was cut below zero for the first time last year to prevent the krone from strengthening too much against the weakening euro.

What's happening around Saudi Arabia

JEDDAH: An African expat woman is being investigated for torturing her baby to death by pouring boiling water on her. The motive behind the vicious attack is unknown.The Board of Investigation and Prosecution in Jeddah has charged the woman with semi...
RIYADH: Over five million Overseas Filipinos Workers (OFWs), including more than one million in Saudi Arabia, observed “zero remittance day” on Friday, in protest against the random checking of boxes sent by them to their families back home by the Cu...
RIYADH: The Ministry of Health announced on Friday that two more people were infected with the Middle East Respiratory Syndrome (MERS) coronavirus. While no deaths were announced, the virus has already killed 26 people in just two weeks, from Aug. 16...
JEDDAH: As international schools in the city gear up for the new academic session, some parents have requested that schools improve the quality of their classes in Islamic studies. Although the Ministry of Education has decreed that all international...
JEDDAH: Health Minister Khaled Al-Falih met with Grand Mufti Sheikh Abdul Aziz Al-Asheikh on Thursday to discuss the Health Ministry’s proposed ban on sacrificing camels during this year’s Haj.Several health officials accompanied Al-Falih at the meet...
MAKKAH: The executive list of the child protection system has now defined 14 kinds of abuse.These include keeping a child without a family document, not administering compulsory vaccinations, disrupting their education, exposing them to an environmen...

Stay Connected