Denmark’s monetary policy is designed to defend the krone’s peg to the euro. But its effect on the broader economy is being closely watched. Danes have now spent seven years with rates below zero -- a world record -- and Dam at Jyske says he’s bracing for another eight.
COPENHAGEN: Denmark is about to become a test case for what happens when banks start charging a lot of customers to store their money.
That’s because one of the country’s biggest banking groups just changed the rules of the game, by removing the floodgate that had shielded most retail depositors. Until Friday, only people with roughly $1 million in surplus cash at their banks were facing a negative rate. Now, the threshold has been reduced to just over $100,000, with no guarantee it won’t go lower.
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