Denmark’s deeply negative interest rates will rise as the economy recovers, central bank governor Lars Rohde said, Reuters reported. Denmark’s currently has interest rates of minus 0.75% and keeps its currency, the crown, close to 7.460 crowns per euro. “Higher interest rates are likely to come with a robustly improving macro environment,” Rohde said in a speech at an economics conference in London. He added that the central bank did not currently see a “speculative housing bubble” anywhere in Denmark, though he added 10% a year rises in prices could not go on indefinitely without causing problems. Under the European Union’s Exchange Rate Mechanism, Denmark must keep the crown within 2.25% of 7.460 crowns per euro, although in practice it has not moved more than 0.5% either way. Last month Denmark’s central bank raised its economic growth forecasts for 2017 and 2018 and has warned there were some risks of the economy overheating.
