Danish central bank cuts deposit rates to below zero for first time in history
Andrew Moran, International Politics Examiner
Copenhagen - The certificate of deposit rate was cut by a quarter by the Danish central bank that will now yield negative 0.2 percent. The central bank argues that the Danish economy is quite strong and investors are willing to pay the Danish government one-fifth of a percentage point for the nation to hold their money.
Furthermore, the central bank also slashed its lending rate from 0.45 percent to 0.20 percent. The policy still maintains a charge on its loans, but the number is substantially low.
Yes, you read that correctly - negative interest rates (also referred to as Negtative Interest Rate Policy {#NIRP}. The government of Denmark is paying people to take their bonds to keep their economy going.