As the cost of deposits rises alongside money market rates, lending rates respond to policy rate changes with a lag (Chart 8). Policy formulation processes Given the monetary policy framework and the corresponding operating procedure, there is also a process in policy formulation.
The US economy is slowing down due to the receding housing market. The risk of more abrupt adjustment cannot be ruled out, though. However, the danger signals regarding the Danish economy come from within. The future course will depend on Denmark's ability to tackle the situation.