The central bank of Denmark (DN) kept rates unchanged today despite European Central Bank moves. According to analysts at Danske Bank, the DN will hold rates for a foreseeable future like the ECB. Key Quotes: “Danmarks Nationalbank (DN) this afternoon announced that it keeps interest rates unchanged. The interest rates on certificates of deposit is thus maintained at -0.65%, and the EUR-DKK monetary policy rate spread is thereby narrowed from -0.35% to -0.25%.” “We do not expect any further rate changes in Denmark for a foreseeable future as well. However, as we have noted earlier, we expect DN to follow its normal reaction function, meaning that DKK10-20bn FX intervention outflow most likely will trigger an independent rate hike, thereby narrowing the spread between DN and ECB policy rates further.” “EUR/DKK has dropped back below 7.46 again and we do not expect that DN will allow EUR/DKK to fall below 7.45 in order to avoid a repeat of the 2014-scenario. If EUR/DKK depreciates further, DN will probably cut the interest rates on certificates of deposit to -0.75%, which is the lower bound on the policy rate, and step up FX interventions. DN can sell unlimited amounts of DKK when foreign exchange is flowing into Denmark.” For more information, read our latest forex news.