20 Feb 2015
DN to remain ‘on-hold’ for the next 12 months – Danske Bank
FXStreet (Edinburgh) - Danmarks Nationalbank could refrain from cutting further its key rate for the next twelve months, suggested Flemming Nielsen, Senior Analyst at Danske Bank.
Key Quotes
“The net position indicates that FX intervention purchases have been above DKK100bn since the 25bp rate cut on 5 February”.
“Danmarks Nationalbank (DN) has refrained from cutting the key rate despite this significant inflow, which indicates that FX intervention purchases appears to be the preferred tool to fend off DKK appreciation pressure”.
“Although further rate cuts cannot be completely ruled out, the bar is high and it will likely take an acceleration in inflow for DN to cut further. We thus expect the bank to keep rates unchanged on a 12M time horizon”.
Key Quotes
“The net position indicates that FX intervention purchases have been above DKK100bn since the 25bp rate cut on 5 February”.
“Danmarks Nationalbank (DN) has refrained from cutting the key rate despite this significant inflow, which indicates that FX intervention purchases appears to be the preferred tool to fend off DKK appreciation pressure”.
“Although further rate cuts cannot be completely ruled out, the bar is high and it will likely take an acceleration in inflow for DN to cut further. We thus expect the bank to keep rates unchanged on a 12M time horizon”.