Denmark’s central bank policy rate stood at a relatively low level of *** percent at the end of March 2026, unchanged from the start of the year, reflecting a period of stability after gradual easing of monetary policy since mid-2025. Despite this stability, the 2026 rate remains well above the exceptionally accommodative levels observed earlier in the decade. Beginning in mid-2022, Denmark experienced a period of exceptionally sharp rate increases, with the policy rate rising from negative territory at negative *** percent to substantially higher levels by the end of 2023. These increases were driven by elevated inflation and the need to maintain currency stability, before easing conditions allowed for rate reductions starting in 2025.