FX.co ★ Denmark Central Bank Follows ECB Rate Cut

In May, Denmark's central bank reduced its key interest rate by 25 basis points to 1.60%, in step with a similar action by the European Central Bank (ECB). This adjustment represents the eighth rate decrease since June 2024, resulting in borrowing costs reaching their lowest level since November 2022. The move is designed to keep the interest rate differential between Denmark and the Eurozone stable, thereby preserving the stability of the Danish krone in relation to the euro.