Trump’s tariff war is creating inflation in the US and deflation in Europe and Denmark. This opens the way for even lower interest rates ahead.
On Thursday this week, the European Central Bank (ECB), as expected, cut its key interest rate by 0.25 percentage points to 2.0 percent. With the cut, which was the eighth in a row, the ECB has halved the rate since it peaked at 4 percent last summer.
A few hours later, the Nationalbank followed suit and lowered its leading interest rate, the certificate of deposit rate, by also 0.25 percentage points, so that it is now down to 1.60 percent.
