8  BIS Review 22/2003  Chart 9 ERM II band and the Danish krone vis-à-vis the euro DKK/EUR 725  730  735  740  745  750  755  760  765 1999  2000  DKK/EUR  2001  Cent ral rat e  2002  2003  Fluct uat ion band  Chart 10 Key monetary policy interest rates in Denmark and the euro area Per cent 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 jan-99  jul-99  jan-00  jul-00  jan-01  DK lending rat e  jul-01  jan-02  jul-02  jan-03  Euro main ref inancing/minimum bid rat e  Euro marginal rat e in main ref inancing operat ion  It is evident from Chart 8 that the exchange rate against the euro is far more stable than allowed by the fluctuation band of +/–2.25 per cent against the euro.
The turbulence in global credit markets, which had its roots in developments in the market for subprime mortgages here in the United States, has been a focal point of attention for market participants and policy-makers around the world. At the Bank of Canada, we have worked hard to understand the causes of this financial market turbulence and assess the implications.