The predominant role of long-term fixed-rate mortgages in Denmark and the limited spill-over from fluctuations in short-term rates to maturities of 12 month or more reduces the tensions associated with raising interest rates in order to defend the exchange rate.
Furthermore, the monetary policy instruments used by Danmarks Nationalbank allow for a differentiation of monetary-policy signals that can ease the burden on “the man in the street” even further - at least in the short run. Commercial banks have unlimited access to borrowing at Danmarks Nationalbank in the weekly operations for as long as they have sufficient collateral.