EUR/DKK to hover around 7.44 as DN cuts policy rates 10bp – Danske Bank

The Danish central bank has decided to cut interest rates by 10bp. Economists at Danske Bank expect this to be enough for now as the upward pressure on the DKK is set to evaporate. 

Not the start of a series of interest rate reductions

“Danmarks Nationalbank (DN) has cut the deposit rate and repo rate by 10bp following eight months of intervention. This leaves the deposit rate at -0.60% and the repo rate at -0.45%.”

“We expect this to be enough for the DKK to weaken against the EUR to around 7.4400. Thus, we do not forecast any further adjustments over the coming 12M and DN would not need to conduct further intervention.”