Danish Central Bank Optimistic About More Negative Rates

There is no limit.

For Denmark, where the sole monetary policy mandate is to defend the krone’s peg to the euro, the central bank is reminding markets that it has limitless scope to deter another speculative attack on its currency regime.

“We are quite confident that we would be able to handle a new wave, if some central banks around the world go even lower,” Governor Lars Rohde told Bloomberg in an interview in Shanghai. “We have a lot of instruments in our toolkit and we will use them.”
Rohde even acknowledges that market predictions pointing to negative Danish rates for most of the rest of this decade might well come true.

via Bloomberg

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, he established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza