Monetary and financial trends - Stabilisation of financial markets after COVID-19 turmoil

Analysis - June 2020 - No. 11

Authors Danmarks Nationalbank
Subject Danish Economy; Current economic and monetary trends; Monetary- and foreign-exchange; The money and currency markets; Monetary- and foreign-exchange policy; Monetary policy; Monetary-policy instrument; Foreign-exchange market; Financial assets and balances
Type Analysis
Year 2020
Published 17 June 2020
Financial markets have stabilised after the turmoil in March triggered by COVID-19 and the subsequent actions taken to contain the virus. The turmoil on financial markets led temporarily to higher financing costs for both corporates and households. The financial conditions remain very accommodative, supporting developments in the Danish economy. Monetary policy rates have remained unchanged since 20 March, after Danmarks Nationalbank increased the interest rate on certificates of deposit by 15 basis points as a result of interventions in the foreign exchange market.