While in Denmark we have an inflation rate under 1% (0.9%), the rest of Europe is still facing an average rate of 2.4%, which means that the ECB cannot lower the interest rates. The USA faces the same situation with 3.5% inflation, forcing the Federal Reserve to maintain high interest rates.
- Economists predict that interest rates will be lowered in June.
- The Danish krone (DKK) is directly tied to the euro and therefore has to follow guidance from the European Central Bank.