Press Releases
Interest-rate changes
4 February 1999 on interest rate reduction
Effective from today the Nationalbank's discount rate is lowered by 0.25 per cent to 3.25 per cent. Likewise, the rate
of interest on the banks' current accounts with the Nationalbank is lowered by 0.25 per cent to 3.25 per cent. The rate
of interest on repurchase agreements and certificates of deposit is also lowered by 0.25 per cent to 3.50 per cent.
The background to the lowering of the interest rates is the strength of the krone against the euro and that the Nationalbank has purchased foreign exchange for a total of approximately DKK 14 billion in January 1999.
For further information please contact Mr Bjarne Skafte on telephone +45 33 63 60 21.
9 April 1999 on interest rate reduction
With effect from 9 April 1999 the Nationalbank's discount rate will be lowered by 0.50 per cent to 2.75 per cent.
Likewise, the rate of interest on the banks' current accounts with the Nationalbank is lowered by 0.50 per cent to 2.75
per cent. The rate of interest on repurchase agreements and certificates of deposit is lowered by 0.50 per cent to 2.90
per cent.
The lowering of the interest rates should be viewed against the background of the reduction of the interest rates by the European Central Bank, ECB.
For further information please contact Mr Bjarne Skafte on telephone +45 33 63 60 21
4 November 1999 on interest rate increase
The discount rate is raised by 0.25 per cent to 3 per cent. Likewise the rate of interest on the banks' current accounts
with the Nationalbank is raised by 0.25 per cent to 3 per cent. The Nationalbank's lending rate and the rate of interest
on certificates of deposit are raised by 0.45 per cent to 3.30 per cent. The increase will have effect as from 5
November.
The interest rate increase should be viewed against the background of the European Central Bank's raising of interest rates.
For further information please contact Bjarne Skafte on tel.: (+45) 33 63 60 21.
3 February 2000 on interest rate increase
The discount rate is raised by 0.25 per cent to 3.25 per cent. Likewise the rate of interest on the banks' current
accounts with the Nationalbank is raised by 0.25 per cent to 3.25 per cent. The Nationalbank's lending rate and the
rate of interest on certificates of deposit are raised by 0.30 per cent to 3.60 per cent. The increase will have effect as
from 4 February 2000.
The interest rate increase should be viewed against the background of the European Central Bank's raising of interest rates.
For further information please contact Bjarne Skafte on tel.: (+45) 33 63 60 21.
Adjustment of the monetary-policy instruments
27 May 1999
With effect from 21 June 1999 the Nationalbank will implement a number of adjustments to its monetary-policy
instruments, i.e. the facilities normally used by Danmarks Nationalbank to steer liquidity and the short term interest rate.
These adjustments do not affect the overall framework for the conduct of monetary policy.
As a consequence of the adjustments mortgage-credit bonds and certain other bonds may be used as collateral for monetary-policy loans from the Nationalbank on a par with government bonds.
In connection with this expansion of the collateral basis monetary-policy lending is restructured from repurchase agreements to loans against collateral. Loans with 14 days' maturity will still be used. In economic terms there is no difference between the two types of transactions, but the restructuring does entail a number of administrative advantages. Borrowers can now use one single safekeeping account and it will be easier to change the securities pledged as collateral.
As a result of the restructuring the rate of interest for repurchase agreements (the repo rate) will now be called the Nationalbank's lending rate.
So far, only banks have had access to the monetary-policy instru-ments. After the adjustments mortgage-credit institutes will also be able to participate in the Nationalbank's monetary-policy operations.
Finally, as a consequence of the expansion of the amount of eligible collateral the Nationalbank has introduced an overall ceiling of approximately kr. 20 billion for the monetary-policy counterparties' overnight current-account deposits with the Nationalbank. This ceiling is not expected to play a role under normal circumstances.
Further information is presented in the article "Adjustment of the Monetary-Policy Instruments" which is available as from today at the Nationalbank's Internet website at www.nationalbanken.dk
Please direct any enquiries to Hugo Frey Jensen, tel. +45 33 63 65 81.
The Nationalbank publishes book on monetary policy
23 June 1999
Today the Nationalbank publishes the book "Monetary Policy in Denmark" This publication gives an overall
presentation of Danish monetary policy. The purpose is to build a bridge between general textbooks and reference
works on monetary policy and Denmark's monetary policy in practice. The book is published in Danish only.
Chapter 1 describes how short-term interest rates are fixed. Chapter 2 gives an outline of the role of the money supply and bond yields in monetary policy. Chapter 3 presents the monetary-policy objective. Chapter 4 outlines the impact of monetary policy on interest-rate formation, exchange rates and output.
The Nationalbank has previously published essays and books on monetary-policy instruments and monetary history. In addition, selected topics have been described and analysed in articles in Danmarks Natio-nalbank's Monetary Review.
This publication is available free of charge at the Nationalbank's Web site at www.nationalbanken.dk. Copies of the book can be ordered from Schultz Information, Herstedvang 10-12, DK-2620 Albertslund, tel.: (+45) 43 63 23 00 or from Schultz ErhvervsBoghandel, Vognmagergade 7, DK-1120 Copenhagen K. The price of the book is kr. 100 including Danish VAT.
Please direct any enquiries to Hugo Frey Jensen on tel. (+45) 33 63 65 81.
New banknotes
9 February 1999 on new 50-krone-note
On 7 May 1999 the Nationalbank will issue a new 50-krone banknote. It is the fourth note in the new series. The note
series will be concluded in 1999 on the issue of a new 100-krone banknote.
The portrait on the face of the 50-krone note is of the author Karen Blixen who is known for e.g. Seven Gothic Tales (1934) and her memoirs Out of Africa (1937).
The centaur on the reverse of the note is inspired by a stone relief from Landet Church, Tåsinge. The centaur is armed with sword and shield and has a long tail ending in a bell.
The principal colour of the new banknote is violet. It is the shortest banknote in the series, but has the same height as the other new notes. The dimensions of the 50-krone banknote are 125 x 72 mm.
The new 50-krone note will be presented at a press conference at Danmarks Nationalbank shortly before it is issued. A folder describing the security features of the note will be distributed to all households. The folder will also be available in English. Information will furthermore be presented via TV, the Internet and on free postcards.
The old 50-krone notes will remain legal tender, but will be withdrawn as they are returned to the Nationalbank. There are 16 million 50-krone notes in circulation. Most of the old notes are expected to be withdrawn within six months after the issue of the new banknote.
For further information please contact Bjarne Skafte on tel. no. +45 33 63 60 21.
16 August 1999 on new 100-krone note
On 22 November 1999 Danmarks Nationalbank will issue a new 100-krone note. This is the fifth and last note in the
new series.
The face of the 100-krone note features a portrait of the composer Carl Nielsen. He is known for such works as the opera Maskerade (1905-06) and the symphony Espansiva (1910-11). He has also written music for many cherished Danish songs.
The fabled animal on the reverse of the 100-krone note is a basilisk, inspired by a stone relief from Tømmerby Kirke in Thy, Jutland.
The principal colour of the new note is orange. The dimensions of the 100-krone note are 135 x 72 mm. It is of the same height as the other banknotes, and is the second-shortest of them.
The new 100-krone note will be presented at a press conference at Danmarks Nationalbank shortly before it is issued. In connection with the issue a folder describing the security features of the note will be distributed to all households. The folder will also be available at banks. An English version of the folder can be ordered from Danmarks Nationalbank.
The banknote will furthermore be presented via TV, the Internet and on postcards. The information on the Internet is also available in English.
The old 100-krone notes will remain legal tender but will be withdrawn as they are returned to the Nationalbank. There are 59 million 100-krone notes in circulation. Most of the old notes are expected to be withdrawn within one year after the new note is issued.
Like the other banknotes the 100-krone note can be seen on the Nationalbank's Web site at www.nationalbanken.dk
For further information please contact Ms. Winnie Jakobsen on telephone (+45) 33 63 60 22.
TARGET will be closed on 31 December 1999
31 March 1999
The Governing Council of the European Central Bank (ECB) has decided that, in view of the Year 2000 changeover,
the TARGET system will be closed on 31 December 1999.
In the light of this decision Danmarks Nationalbank will close both the Danish part of TARGET and the Nationalbank's euro payment system, DEBES, on 31 December 1999.
Please direct any enquiries to Mr. Bjarne Skafte on tel. + 45 33 63 60 21.
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Version 1.0 April 2000 Nationalbanken.
Published by Danmarks Nationalbank April 2000, http://www.nationalbanken.dk