23 June 2020
The covid-19 outbreak and the measures taken to contain the virus have caused a sudden, rapid decline in economic activity, both internationally and in Denmark. The full extent of the negative impact remains uncertain, and the economic downturn could be deep and prolonged. The release of the countercyclical capital buffer gives institutions more scope to maintain lending. The Council does not expect to recommend an increase of the buffer rate until 2021 at the earliest.