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Making sense of the DNB’s “technical adjustments”

The recent technical adjustments to the Danish Nationalbank’s monetary toolkit simplify the policy framework and are not intended to alter the policy stance. But with the Danish krone at its strongest level against the euro since September 2017, and at a level where the Nationalbank has loosened policy in the past, we think that a good old-fashioned (non-technical) rate cut is likely before long.

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