Denmark's central bank last raised the lending rate by 25 basis points to 1.55% in July this year, after increasing the rate by 25 basis points in April this year, mirroring the interest rate increases by the European Central Bank (ECB). The Danish Central Bank typically follows the moves of the ECB in order to keep its currency, the Krone, stable. Denmark reported an annual inflation rate of 2.6% in August and 2.9% in July, compared to 3.1% in May, and 2.9% in April this year.
The Bank also announced a new liquidity program last month. The Danish economy grew at a year on year rate of 2% in Q2, compared to 1.7% in Q1 2011 (2.9% in Q4 2010). The Danish krone (DKK) has weakened about 3% against the US dollar this year, and last traded around 5.71.