Denmark’s Central Bank Urges Lenders to Boost Borrowing and Ease Pressure on Market Rates

Denmark’s central bank wants local lenders to tap more of its one-week loans and provide added cash to clients to help reduce short-term interest rates.

The call comes as market rates for most of 2025 have moved above the Nationalbanken’s official lending rate because of tight liquidity, challenging the monetary policy transmission and raising borrowing costs, the bank said in a report published on Monday.