Minister expresses concern over excessive interest rate hikes in Denmark

The Minister of Business Affairs has expressed concerns that banks have overstepped in their interest rate hikes, which have resulted in monthly loan payments increasing by as much as 15% in certain cases. In light of this, the minister has established a working group aimed at exploring all possible avenues to reduce the financing costs for households and businesses in the country.

With the central bank set to announce its interest rate decision tomorrow, which has remained unchanged for over a year, the minister commented on recent announcements by banks regarding interest rate increases due to expected yields in funding. She indicated that she plans to thoroughly investigate these hikes.

“It is clear that this is a significant increase, and in some cases, monthly payments have risen by 15%, which is quite substantial and significantly exceeds the inflation target,” said the minister. She urged banks to be cautious, especially given the current economic situation.

The minister’s initiative seeks collaboration with all stakeholders, emphasizing that with the wealth present in society, financing costs should not be so burdensome. She acknowledged that the current interest rates are high and expressed a desire for banks to partake in a joint effort against inflation instead of operating in a separate reality, stressing that the recent interest rate increases are excessive.

“I would have liked to see them striving to manage their operations better so that the payment burdens do not escalate this dramatically from month to month,” she concluded.