Denmark pushes deposit rate further into negative territory

AP News
Posted: Feb 05, 2015 10:39 AM

COPENHAGEN, Denmark (AP) — Denmark's central bank has cut a key interest rate for the fourth time in a month as it tries to keep the krone currency stable against the euro.

Nationalbanken said Thursday it has cut the interest rate on certificates of deposit by a further 0.25 percentage points to minus 0.75 percent.

The change takes effect Friday and is the bank's latest attempt to prevent the krone from rising too much against the euro. A negative deposit rate means banks have to pay to park their cash at the central bank.

Other key interest rates were left unchanged.

Denmark is a member of the European Union, but does not use the euro. The central bank typically follows European Central Bank changes as it tries to keep the krone stable.