The Danish central bank Nationalbanken has reduced interest rates again.

“Effective from 11 December 2009, Danmarks Nationalbank's rate of interest on certificates of deposit is reduced by 0.05 percentage point to 0.95 per cent, the lending rate is reduced by 0.05 percentage point to 1.20 per cent, and the current-account rate is reduced by 0.05 percentage point to 0.85 per cent. The discount rate is maintained at 1.0 per cent,” the central bank says.

It says the reduction is a consequence of purchases of foreign exchange in the market. The money-market rates in euro are very low and the spread to the equivalent Danish rates tends to strengthen the Danish krone.

With effect from Dec. 11, the bank’s rates are as follows:
Lending rate: 1.20 per cent
Rate of interest on certificates of deposit: 0.95 per cent
Current-account rate: 0.85 per cent
Discount rate: 1.0 per cent