* Denmark's central bank keeps interest rates unchanged
* The National bank wants interest rate on steady course
(Adds detail, analyst comment)
COPENHAGEN, June 6 Denmark's central bank kept
interest rates unchanged on Friday, a day after the European
Central Bank cut its main interest rates.
The lending rate stayed at 0.20 percent and the certificates
of deposit rate at 0.05 percent, the Nationalbank said in a
statement. In making its decision, it said it had taken into
account sales of foreign currency in the market since the
beginning of April, the Danish crown exchange rate and
developments in market interest rates.
The central bank, whose policy cornerstone is to keep the
local currency steady within a narrow band against the euro,
lifted its weekly certificates of deposit rate into positive
territory on April 24 for the first time since mid-2012.
"The central bank has probably wanted to avoid a zig-zag
course," wrote Sydbank chief economist Jacob Graven in a note to
The Danish central bank used to shadow rate movements by the
ECB but has changed rates independently a few times during the
financial crisis in an effort to keep the crown stable.
Its July 2012 decision to take its certificate of deposit
rate negative for the first time in the bank's nearly 200-year
history is seen as having helped to achieve that.
The Danish crown had strengthened on Thursday
after the ECB decision to 7.4617 and held at that level after
the announcement Friday. The Danish central bank was closed on
Thursday due to holiday in Denmark.
The bank intervenes in the market to keep the crown in a
narrow band around its central parity of 7.46038 per euro. It
changes rates when its interventions are not effective enough.
($1 = 5.4807 Danish crowns)
(Reporting by Ole Mikkelsen; Editing by John Stonestreet)