Thursday's Danish rate cut was expected and more may follow as the central bank continues to combat a strengthening of DKK against EUR, says Sydbank analyst Jacob Graven. Notes that the Danish lending rate, with the latest 10bps cut, has reached an all-time low of 0.6%, but also that "it's highly unlikely the cut will suffice to keep the krone from appreciating further against the euro" as the Greek situation and other European sovereign debt hotspots continue to make Denmark an attractive safe haven to worried investors. "It can't be ruled out that Nationalbanken must lower the rate again in the coming weeks," Graven adds.
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