Analyse: Nationalbanken i komfortabel situation i forsvar af DKK

Analyse fra Natixis

Conclusion: All this means that the Danish central bank is in a comfortable position and that the market would clearly have a hard time enforcing Nationalbanken to exit the euro peg. As outlined above, by pegging the krone to the euro, Denmark’s monetary policy is effectively determined by the European Central Bank. Time will tell whether the current set of measures of the Danish central bank sufficiently mirrors the ECB’s monetary steps taken so far. The persisting appreciation pressure on the Danish krone suggests that this might not yet be the case. Anyway, the Danish central bank has made clear that more action might come. Govenor Lars Rohde put it in the last week as follows: “The message is that if it’s not enough, we will do even more. … Either we can expand our balance sheet or we can go deeper into negative territory with the interest rates. That is a possibility and no one should try to outguess us here.” As far as Denmark’s inflation outlook is concerned, a more expansionary monetary policy of Nationalbanken seems to be fully justified. Denmark’s consumer price inflation tumbled into negative territory recently, following its euro area counterpart