Therefore, if sizeable and persistent, increases in those market interest rates, when left unchecked, may become inconsistent with countering the downward impact of the pandemic on the projected path of inflation.
The Danish economy is at its capacity limit, and many companies find it difficult to recruit the manpower they require. In more positive terms, employment in Denmark has never been higher, and the unemployment rate is the lowest since the start of the 1970s, and also among the lowest in the world. This also leaves little scope for economic growth in the immediate future.