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Author Topic: [2015-02-05] Danmarks Nationalbank: Interest Rate Reduction  (Read 1237 times)
vokain (OP)
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February 05, 2015, 06:49:19 PM
 #1

http://www.nationalbanken.dk/en/pressroom/Pages/2015/02/DNN201521789.aspx

Effective from 6 February 2015, Danmarks Nationalbank's interest rate on certificates of deposit is reduced by 0.25 percentage points to -0.75 per cent. The lending rate, the discount rate and the current account rate remain unchanged at 0.05 per cent, 0.0 per cent and 0.0 per cent, respectively.

The interest rate reduction follows Danmarks Nationalbank's purchase of foreign exchange in the market.

Following the decision by the Swiss National Bank to discontinue the minimum exchange rate and the decision by the European Central Bank to launch an expanded asset purchase programme, there has been a considerable inflow of foreign currency.

The traditional monetary policy instruments of the fixed exchange rate policy are interventions in the foreign exchange market and influencing the interest rate spread relative to the euro area. Danmarks Nationalbank's interventions in the foreign exchange market amounted to kr. 106.3 billion in January and the rate on certificates of deposit has been lowered several times. Additionally, the Ministry of Finance has decided to suspend the issuance of domestic and foreign bonds until further notice, based upon the recommendation of Danmarks Nationalbank. These measures have been taken with the intention to inhibit the inflow of foreign exchange.

"The fixed exchange rate policy is an indispensable element of economic policy in Denmark – and has been so since 1982. Danmarks Nationalbank has the necessary instruments to defend the fixed exchange rate policy for as long as it takes", says Lars Rohde.

Lars Rohde continues: "There is no upper limit to the size of the foreign exchange reserve. The sole purpose of the monetary policy instruments is maintaining a stable krone exchange rate against the euro. The revenue of Danmarks Nationalbank is positively affected by the increase of the foreign exchange reserves."

Enquiries can be directed to Karsten Biltoft on tel. +45 3363 6021.
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Lethn
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February 05, 2015, 07:02:14 PM
Last edit: February 05, 2015, 07:14:18 PM by Lethn
 #2

The collapse is beginning guys, looks like my estimate at Q1 was right, remains to be seen though whether it will be a full collapse or the Euro zone will keep limping on, expect other central banks to get desperate.
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February 05, 2015, 08:56:45 PM
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Now, if they really want, I'l take all the cash they can give me, lets start at 10 billion, and then instead of me charging them 0.75%, I'll only charge 0.50%.  Just bring me the cash and I'll keep taking a little out as my fee - ONLY 41 million per month or 500 million a year, about $1.2 million per day.  They'll save a lot from what they're being charged by others!


Check this out, it is corporations too:
http://money.cnn.com/2015/02/05/investing/nestle-corporate-bonds-negative-rates/index.html?source=yahoo_quote

Quote
There's only one way to describe what's going on in Europe right now: bizarre.
In an unprecedented event, the yield on Nestle's corporate debt went negative this week.

That means investors are essentially willing to pay for the right to park their cash in the safety of the Swiss chocolate company. The bonds might as well come with a note saying: "In Nestle we trust."

You're looking at something that's never happened before. It's a brand-new phenomenon," said Richard Salditt, a credit analyst at Bloomberg Intelligence. "Strange things are going on in financial markets."
No, investors haven't suddenly become addicted to chocolate bars. The euro-denominated corporate debt of other super-safe (but non-chocolate-producing) European companies like Royal Dutch Shell (RDSA) and Novartis (NVS) are also flirting with negative territory.
Even some blue-chip American companies are experiencing this negative trend. The euro-denominated bonds of Bank of America (BAC), General Electric (GE) and McDonald's (MCD) are all trading near zero, Salditt said.

...continues...
The bank estimates the total amount of euro government debt and bills yielding below zero has surged to €1.2 trillion, compared with €500 billion at the end of October and zero in June.
...continues...



kjlimo
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February 06, 2015, 03:06:03 AM
 #4

While interesting, did I miss the mention of Bitcoin in this article?

Perhaps move this to off topic?

Coinbase for selling BTCs
Fold for spending BTCs
PM me with any questions on these sites/apps!  http://www.montybitcoin.com


or Vircurex for trading alt cryptocurrencies like DOGEs
CoinNinja for exploring the blockchain.
vokain (OP)
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February 06, 2015, 04:18:28 AM
 #5

While interesting, did I miss the mention of Bitcoin in this article?

Perhaps move this to off topic?

The Times 03/Jan/2009 Chancellor on brink of second bailout for banks
cr1776
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February 06, 2015, 11:57:35 AM
 #6

Articles in the Press forum should at least mention Bitcoin.

They should also be "notable" and be formatted by the guidelines. You can see how that has worked out! I gave up pointing that out 2 years ago since it is honored in the breach more than anything! 

You are right though, but it seems any mods don't care.
 Grin

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February 06, 2015, 06:19:17 PM
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Articles in the Press forum should at least mention Bitcoin.

They should also be "notable" and be formatted by the guidelines. You can see how that has worked out! I gave up pointing that out 2 years ago since it is honored in the breach more than anything! 

You are right though, but it seems any mods don't care.
 Grin



I stand corrected! They did move it! Perhaps there is hope for the Press section after all!
vokain (OP)
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February 11, 2015, 10:29:51 PM
Last edit: February 12, 2015, 10:35:35 AM by vokain
 #8

The collapse is beginning guys, looks like my estimate at Q1 was right, remains to be seen though whether it will be a full collapse or the Euro zone will keep limping on, expect other central banks to get desperate.

Lethn, very interesting because relatedly, the last of the 7 great Pluto-Uranus squares takes place from December 2014-March 2015. I was just combing through my old emails today and stumbled back upon this passage (which I received July 2013):

The final squares between Uranus and Pluto

The final two cosmic conflicts in the series of squares between Uranus and Pluto... and how they affect your sign.
Between June 2012 and March 2015, the world will have seen a series of seven rare and powerful right angles between Uranus and Pluto. The final (and potentially most powerful) of the two remaining squares, takes place between December 2014 and March 2015.

Astrologers are a little divided about what precisely they mean. Some say they spell the death of the old world, the end of a cold, callous political and economic system that has dominated planet Earth for centuries. With this must go the mechanisms that have traditionally been employed to keep borders closed, armies primed, taxes paid and fearmongers in power. No longer will governments, the world over, be able to maintain their grip on power by fostering fear, prejudice, hatred, intolerance, selfishness, greed and separation. Other astrologers point out that wherever an old system is collapsing, a new one must emerge. They see the Uranus/Pluto squares as heralding the birth of a new global paradigm in which millions, worldwide, refuse to be kept in check by a constant stream of news stories, all based loosely around the apparent threats that some nations pose to others... and the sense of anxiety that surrounds the belief that ’we’ must be kept safe, at all costs, from ’them.’ Coming next is a new phase for humanity, built upon a newly developing appetite for mutual trust, respect, acceptance and co-operation!

It’s not that some astrologers disagree with this view. It’s more that some say it’s too long-sighted. Such a golden, more glorious time may well be coming... but before any of us can get there, we must first live through many long, dark days full of gloom and hopelessness. They wonder what will be left of the world by the time the heavy veil of despair is finally raised. My own careful cosmic studies have left me very sure that those brighter times are, indeed, coming... and that they will, indeed, begin to make themselves evident from April 2015 onwards. And while I won’t pretend that I see an easy ride from here to that point in the future... the world has survived far worse in the past and reports of some imminent end to life on Earth as we know it are grotesquely premature!

It is, though, fair to say that the communal, collective roller coaster that we will all find ourselves riding as we watch the news over coming months will be reflected by the dramatic inner journeys that we all find ourselves undergoing; emotionally and psychologically. No matter what sign we are or when we were born, we can expect upheaval, self-doubt, deep reflection and intense review, followed by a sense of liberation and inspiration that allows us to finally start shaping and claiming the kind of lives we have long dreamed of living. It’s not that those changes in our hearts are all due to happen suddenly, on one given date. It’s fairer to say that we’re already going through those processes of inner change as we speak and that these will continue, with only brief pauses and interruptions until the end of March 2015.
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