Denmark vows to keep currency peg, likely to cut rates on Thursday
Published on: Monday 19 January 2015
Denmark's political and central banking establishment is uniting in a campaign to kill speculation that the country might follow Switzerland in scrapping a currency link to the euro. With markets expecting upward pressure on the Danish crown to persist, most analysts predict an interest rate cut as soon as Thursday - which would be the second this week - if the European Central Bank moves to stimulate the euro zone economy. The Swiss franc has leapt almost 20 percent against the euro since last week when the Swiss National Bank out of the blue ended a three-year-old policy of capping its currency.
