Danish central bank cuts interest rates again, more expected

Denmark's central bank has slashed its main policy rate for a second time this week.

Late on Thursday afternoon the country's monetary authority announced it had lowered its deposit rate by another 15 basis points to -0.35%.

That followed a similar reduction on 19 January and came amid reports that the Nationalbank has been buying significant amounts of foreign currency in a bid to weaken the krone.

Nevertheless, the decision had been anticipated by economists such as Jonathan Loynes, chief European economist at Capital Economics.

The Riksbank may have to cut its deposit rate further. While it is already below that of the European Central Bank (-0.20%) it is still higher than the Swiss central bank's (-0.75%) own, Loynes added.

In fact, "the Nationalbank may well have to follow the ECB and conduct QE of its own," he said.