Danish central bank cuts interest rate

Denmark's central bank cut its interest rates on certificates of deposit by 15 basis points to minus 0.35 percent from Friday, marking its second rate cut in a week.

"Effective from Jan. 23, 2015, Danmarks Nationalbank's interest rate on certificates of deposit is reduced by 0.15 percentage point," the central bank said in a statement on Thursday.

"The lending rate, the discount rate and current account rate are maintained," it added.

Danmarks Nationalbank's interest rate reduction follows the decision of the European Central Bank to start a large scale quantitative easing program and pump over 1 trillion euros (1.12 trillion U.S. dollars) into the euro zone economy in a bid to address risks of deflation.

Danmarks Nationalbank is tasked with keeping Denmark's national currency, the Danish kroner, stable in relation to the euro common currency, to which it is pegged at a fixed exchange rate.

The Danish kroner per euro reached its highest level since mid-2012 as investors seeking safe-haven currencies switched from the Swiss franc in the wake of Switzerland's move to abandon its currency cap.

On Jan. 19, 2015, Denmark's central bank cut its interest rates on certificates of deposit by 15 basis points to minus 0.2 percent, and the lending rate was cut by the same amount to 0.05 percent, in order to keep the Danish kroner stable versus the euro.

Analysts here said Thursday's rate cut will help curb the kroner's strength, and take the top pressure off. Endit