COPENHAGEN (Reuters) – Denmark’s central bank raised its key interest rate by 0.25 percentage points to 2.85% on Thursday, following a rate hike earlier in the day by the European Central Bank.
“The interest rate increase is a consequence of the increase by the European Central Bank of its main monetary policy rate, the deposit facility rate, by 0.25 percentage point,” the central bank said in a statement.
The move was Denmark’s seventh rate hike since July last year, closely tracking the ECB and other central banks across the globe that are tightening monetary policy to combat inflation.
Denmark’s benchmark current account interest rate and the certificate of deposit rate were each raised by 0.25 percentage points to 2.85% from 2.6%, while the so-called lending rate was raised by 0.25 percentage points to 3% from 2.75%.
(Reporting by Nikolaj Skydsgaard and Jacob Gronholt-Pedersen, editing by Mark Heinrich and Hugh Lawson)