Monetary and financial trends - Stable financial markets support economy in recession

Analysis - September 2020 - No. 17

Authors Danmarks Nationalbank
Subject Economic activity and employment; Current economic and monetary trends; Danish Economy; Monetary policy; Monetary- and foreign-exchange; Monetary- and foreign-exchange policy; Financial assets and balances; Fixed-exchange-rate policy
Type Analysis
Year 2020
Published 23 September 2020
Financial markets have been relatively calm since end-March. Central banks' actions during the spring are a main reason that financial markets have calmed down. Financing costs for households and non-financial corporations have declined in Denmark, and they are now on the same level as in the start of 2020. The krone exchange rate towards the euro is moderately strengthened since March. At end-August Danmarks Nationalbank had not intervened in the foreign exchange market during the past five months. The monetary interest rates are unchanged as well. Credit growth is low in Denmark compared to the euro area.