Business News Asia
The Danish central bank raised its key interest rate by 0.50% to -0.1% yesterday, following the rate hike by the European Central Bank (ECB) a few hours earlier.
“The rate hike is a result of the ECB’s policy rate hike,”the Danish central bank said in a statement.
The Danish central bank wants to raise interest rates to stabilize the krone against the euro. This differs from other national central banks, which want to raise interest rates to control inflation.
The ECB has decided to raise interest rates by 0.50%. This is the first rate hike in 11 years and the largest rate hike since 2000 to prevent inflation from rising.
This is more than the ECB’s signal in June that it would only raise rates to 0.25% in July.
The ECB has decided to increase the deposit rate by 0.50% from -0.50% to 0%. The interest rate was lower than 0% for up to 9 years.
The ECB also increased the refinancing rate by 0.50%, from 0% to 0.50%, and the lending rate by 0.50%, from 0.25% to 0.75%.