But despite very low Danish monetary policy rates, subdued consumer price inflation means that real interest rates in Denmark are not lower than in a number of other countries. THE IMPACT ON THE PENSION SECTOR While the decline in interest rates reflects underlying economic developments, the emergence of very low and even negative interest rates in itself has important implications.
They are highly variable month-to-month and quarter-to-quarter, and they are imperfect proxies for the true change in general prices. As a consequence, discerning the underlying trend of inflation is no easy task.