The Danish central bank cut its key interest rate by 25 basis points to a negative 0.20 percent following a rate reduction by the European Central Bank.
Danmark's Nationalbank said in a statement that the benchmark certificate of deposit rate was cut to minus 0.2 percent, which means that banks are in the unusual situation of paying to deposit their money with the central bank.
The bank's lending rate was also cut by 25 basis points to 0.20 percent from 0.45 percent. The bank last cut the deposit rate to 0.05 percent in May.
"In connection with the introduction of negative interest rate on certificates of deposit the current account limits will be revised upward," the bank said in a statement.
Danmark's Nationalbank said in a statement that the benchmark certificate of deposit rate was cut to minus 0.2 percent, which means that banks are in the unusual situation of paying to deposit their money with the central bank.
The bank's lending rate was also cut by 25 basis points to 0.20 percent from 0.45 percent. The bank last cut the deposit rate to 0.05 percent in May.
"In connection with the introduction of negative interest rate on certificates of deposit the current account limits will be revised upward," the bank said in a statement.
