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24 Feb 2015
Further rate cuts ruled out in Denmark – Danske Bank
FXStreet (Edinburgh) - In the view of Senior Analyst at Danske Bank Lars Rasmussen, the DB would refrain from incurring in further rate cuts in order to fight DKK appreciation.
Key Quotes
“If the appreciation pressure on the Danish kroner continues, we do not expect it to lead to further rate cuts from Danmarks Nationalbank (DN)”.
“Instead, we expect FX purchases to be the preferred tool to fend off any potential inflow”.
“However, we cannot fully rule out more unconventional measures such as FX swap arrangements and bond purchases are also available, although not that likely, in our view”.
“We do not believe that the recent rise in EUR/DKK should lead to a rate hike from DN in the next year”.
Key Quotes
“If the appreciation pressure on the Danish kroner continues, we do not expect it to lead to further rate cuts from Danmarks Nationalbank (DN)”.
“Instead, we expect FX purchases to be the preferred tool to fend off any potential inflow”.
“However, we cannot fully rule out more unconventional measures such as FX swap arrangements and bond purchases are also available, although not that likely, in our view”.
“We do not believe that the recent rise in EUR/DKK should lead to a rate hike from DN in the next year”.