Analyses focus on current issues of particular relevance to Danmarks Nationalbank’s objectives. The analyses may also contain Danmarks Nationalbank’s recommendations. They include our projections for the Danish economy and our assessment of financial stability. Analyses are targeted at people with a broad interest in economic and financial matters.

Monetary policy

Positive pass-through from negative rates

Monetary policy interest rates are negative in a number of countries, including Denmark. Concern has been expressed that negative rates may, in some cases, have had undesirable effects on bank lending rates. In Denmark, pass-through to bank lending rates remains positive, and there are no indications to suggest that negative rates have weakened bank lending. The pass-through of monetary policy interest rates to bank lending rates slowed around the financial crisis, driven primarily by the banks with the highest risk exposure before the crisis.