Nordea economist Jan Storup Nielsen also said in a note on Wednesday that the central bank was likely to increase the current account limits if it introduced a negative CD rate. Banks held 186.3 billion Danish crowns in CDs at the central bank and 21.5 billion crowns in current accounts as of Wednesday. But it added: “Such a scenario would imply that the current account rate will be higher than the rate of interest on certificates of deposit and the current account limits will be revised upward.”Ĭurrent account limits are set for individual banks and for the financial sector overall, with the limit now at just above 23 billion crowns.ĭanske Bank’s Kirkegaard said that a cut the CD rate to negative, would probably be accompanied by an increase in the current account limits.
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