Danish central bank will not lift current account cap to help banks
Reuters - Jan 26, 2015
Denmark's central bank said on Tuesday it did not plan to lift the amount of cash commercial banks can keep in its current account after increasing the cost to them of holding money in deposits last week.
The central bank cut the certificate of deposit rate -- its main policy rate -- on Monday and on Thursday last week to defend the crown currency's peg to the euro, taking it from -0.05 percent to -0.35 percent.
That means banks needing to store money with the central bank for liquidity purposes are effectively charged 0.35 percent for their deposits.
