Something that would surprise people in other parts of the world, banks in Denmark are offering 20-year home loans to the Danish citizens at a fixed interest rate of zero. Denmark has the longest history of negative central bank rates in the world. It stands out globally for having continued with it for a longer period of time than any other country in the world.
The home-finance unit, Nordea Bank Abp can, is offering such mortgages for its customers. It is a lower coupon than even benchmark United States 10-year treasuries.
Since the country’s policy makers drove their rate below zero in 2012, the homeowners in the European country have benefitted from a continuing slide in rates for borrowing.
It seemed to be an unthinkable notion once that the customers can borrow for as long as 20 years without paying interest.
Many central bankers all over the world are currently staying away from hiking rates. Bloomberg, in its quarterly review of monetary policy, suggested…