Official interest rates

Effective from 8 January 2016, Danmarks Nationalbank's interest rate on certificates of deposit is increased by 0.10 percentage point to -0.65 per cent. The lending rate, discount rate and the current account rate are unchanged.​

Danmarks Nationalbank conducts monetary policy by setting the monetary-policy interest rates. In practice, this is done via the lending and deposit facilities made available by Danmarks Nationalbank to banks and mortgage banks.

DANMARKS NATIONALBANK'S INTEREST RATES

Interest rate type Interest rate Applying as of See graph
Current-account rate 0.00 per cent 1 June 2012
Certificates of deposit rate -0.65 per cent 8 January 2016
Lending rate 0.05 per cent 20 January 2015
Discount rate 0.00 per cent 6 July 2012

Current account
Current-account deposits at Danmarks Nationalbank are demand deposits which the monetary-policy counterparties can use as a means of payment immediately and at their own initiative.

The current-account deposits of the monetary-policy counterparties accrue interest at the current-account rate.

The monetary-policy counterparties must not have negative balances at the end of the monetary-policy day at 3:30 pm.

Individual current-account limits have been set for each monetary-policy counterparty, as well as an overall limit for the monetary-policy counterparties' total current-account deposits. The overall current-account limit must also be observed at the end of the monetary-policy day at 3:30 pm. If the overall current-account limit for the monetary-policy counterparties has been exceeded, each counterparty's current-account deposits in excess of the individual limit will be converted into certificates of deposit.

Certificates of deposit
Danmarks Nationalbank sells certificates of deposit in its regular open market operations on the last banking day of the week. In addition, Danmarks Nationalbank may buy or sell certificates of deposit in extraordinary open market operations in order to adjust liquidity.

It is possible to buy and sell certificates of deposit at Danmarks Nationalbank from 10:00 am to 3:30 pm. Certificates of deposit may be traded among the monetary-policy counterparties, but not outside the group of counterparties. Certificates of deposit are settled on the day of the open market operation with immediate liquidity effect. Basically, there are no quantitative restrictions on the counterparties' purchases and sales of certificates of deposit.

Certificates of deposit are zero-coupon securities with an interest rate consisting of the difference between the purchase price and the redemption price of kr. 1,000,000.

The maturity of the certificate of deposit series is the time until the next regular open market operation (typically 7 days).

Collateralised lending
Danmarks Nationalbank offers weekly collateralised lending against assets in Danmarks Nationalbank's collateral basis in the regular open market operations (on the last banking day of the week). Loans can be raised from 10:00 am to 1:00 pm on the day in question.

The maturity of the loans is the period until the next open market operation (the last banking day of the week). The loans are settled on the day of the open market operation with immediate liquidity effect and fall due for redemption on expiry.

In December 2011, Danmarks Nationalbank announced a temporary 3-year lending facility. The facility was open on 30 March 2012 and 28 September 2012. Read more about the 3-year loans.