COPENHAGEN, April 1 (Reuters) – Denmark’s central bank chief on Wednesday rejected the idea of quantitative easing (QE), or large-scale buying of assets, as a tool to ease the economic impact of the coronavirus pandemic.
“The short answer to that question is that fixed exchange-rate policy and QE do not fit well together,” central bank governor Lars Rohde told journalists.
EU member Denmark conducts a fixed exchange-rate monetary policy to keep its currency steady within a narrow band against the euro, and the central bank changes interest rates for the sole purpose of carrying out that mandate. (Reporting by Stine Jacobsen; Editing by Alex Richardson)
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