16 June 2026
Global growth has so far proved robust in the face of the war in the Middle East and the continued high level of trade policy uncertainty. Global uncertainty has only to a limited extent affected the financial markets, where risk appetite remains high. The high increases in house prices in the capital area – and now also Aarhus – indicate that risks continue to build up in the housing market. At the same time, credit growth for housing purposes has increased in the municipalities in the capital region. In the Faroe Islands, cyclical systemic risks have been building up over a prolonged period and are at an elevated level. The Council recommends that the countercyclical capital buffer in the Faroe Islands be increased from 1 per cent to 2 per cent. The Council assesses that the countercyclical capital buffer in Denmark should be maintained at 2.5 per cent, and that a buffer rate of 1 per cent remains appropriate in Greenland.