It is essential that the current extraordinary stimulus measures do not increase long-term inflationary expectations as this would create problems for the economy in the longer term as a result of measures to mitigate the current crisis. Thanks to the low policy rates, the banks can borrow from Danmarks Nationalbank at low cost.
But Danmarks Nationalbank is by no means the only source of financing for Danish banks. The financial crisis has generally made it more difficult for the banks to obtain financing in the international money and financial markets. This has entailed higher financing costs.