The National Bank of Denmark has published its biannual analysis of monetary and financial trends, assessing monetary policy and financial conditions as broadly neutral for the Danish economy. It followed the European Central Bank with 25 basis point rate increases in June and September, lifting its current account rate to 2.10% while keeping the policy rate spread to the euro area unchanged at minus 40 basis points. Higher borrowing costs have tightened conditions, but stronger risk appetite, rising equity prices and lower mortgage bond spreads have offset that effect. The krone has gradually weakened against the euro since March but remains close to its central rate. The central bank bought DKK 6.3 billion of kroner through foreign exchange interventions in June and August, as foreign krone sales and purchases of overseas securities by insurers and pension funds weighed on the currency. Household and corporate financing costs have risen only slightly so far, although delayed repricing of existing loans is expected to lift average lending rates through the end of 2027. Policy rates could gradually become restrictive if current market expectations for further increases materialize.
2026-09-23National Bank of Denmark
National Bank of Denmark assesses financial conditions as broadly neutral after two rate increases
The National Bank of Denmark assesses monetary policy and financial conditions as broadly neutral after raising rates by 25 basis points in both June and September. It kept the euro-area rate spread at minus 40 basis points and intervened by DKK 6.3 billion as the krone weakened. Further expected rate increases could move policy into restrictive territory.