23 Mar 2015
Danmarks Nationalbank raises banks’ current account limit again – Danske
FXStreet (Barcelona) - Jens Nærvig Pedersen, Senior Analyst at Danske Bank, notes that the Danmarks Nationabank raised the current account limits for banks’ again, to ease the pressure from negative rates.
Key Quotes
“Danmarks Nationalbank (DN) has raised banks’ current account limit to DKK173bn from DKK145bn – the second increase in less than a week.”
“The motivation this time was also to alleviate the pressure from negative rates for banks with large deposits.”
“It effectively works as an implicit rate hike as the average rate on banks’ deposits at the central bank is now roughly 5bp less negative.”
“We stick to our call that EUR/DKK will trade at 7.4490 and that DN will keep its policy rates unchanged at present levels over the next 12M.”
Key Quotes
“Danmarks Nationalbank (DN) has raised banks’ current account limit to DKK173bn from DKK145bn – the second increase in less than a week.”
“The motivation this time was also to alleviate the pressure from negative rates for banks with large deposits.”
“It effectively works as an implicit rate hike as the average rate on banks’ deposits at the central bank is now roughly 5bp less negative.”
“We stick to our call that EUR/DKK will trade at 7.4490 and that DN will keep its policy rates unchanged at present levels over the next 12M.”