Denmark’s central bank raises key interest rate to 1.75%

COPENHAGEN (Reuters) -Denmark’s central bank raised its key interest rate by 50 basis points to 1.75% on Thursday, following a rate hike earlier in the day by the European Central Bank.

Denmark, the first country in the world to impose negative rates in 2012, broke with a decade-long experiment of negative interest rates in September when it lifted its key rate into positive territory.

“The interest rate increase is a consequence of the increase by the European Central Bank of its main monetary policy rate,” the central bank said in a statement.

Earlier on Thursday, the ECB raised its benchmark deposit rate by 50 basis points to 2% and signalled further tightening.

Denmark’s current account rate, which is the benchmark rate, and the certificate of deposit rate were each raised by 50 basis points from 1.25% to 1.75%, the highest level since 2009. The lending rate was also raised by 50 basis points to 1.9% from 1.4%.

(Reporting by Nikolaj Skydsgaard; editing by Jacob Gronholt-Pedersen, Alexandra Hudson)