Denmark holds main rate

Denmark’s central bank cut its certificate of deposit rate by 10 basis points to 0.50 per cent to curb the strength of the crown, but kept its main policy rate unchanged yesterday. The reduction came exactly a week after the Nationalbank’s last 10 bps cut in the CD rate to curb the crown. “The rate reduction is a consequence of purchases of foreign exchange in the market,” the Nationalbank said in a statement. It kept its main interest rate, the lending rate, steady at 1.05 per cent, but the bank trimmed its current account rate – another secondary rate – by 10 bps to 0.40 per cent.