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Thursday, May 31, 2012 - 10:52

Danish Central Bank Cuts Lending Rate 0.15pp To 0.45%


--Rate Cut Follows Failure To Contain Kroner's Rise Vs Euro

LONDON (MN) - The Danish National Bank today cut its key lending rate by 0.15 percentage points to 0.45% in what seems to be a bid to maintain its tight currency peg against a depreciating euro.

The central bank normally adjusts its key interest rates in order to keep the Danish currency within its official ERM2 trading band against the euro.

In recent days, the bank has struggled to stop its currency appreciating against the euro despite interventions in the foreign exchange market.

--London Bureau; Tel: +442078627492; email: jmtreeck@marketnews.com

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