COPENHAGEN, Aug 13 (Reuters) - Danish central bank Governor Nils Bernstein said on Thursday that purchases of foreign exchange paved the way to cut interest rates.
Bernstein's remarks came after the Nationalbank cut its lending rate by 10 basis points to 1.45 percent.
The bank buys foreign exchange in the markets to try to keep the crown steady against the euro, and growth of the bank's forex reserves can trigger reductions in interest rates.
'We have now for some time been able to buy forex in the market,' Bernstein told Reuters. 'That gives an opportunity to reduce the interest rate.'
He declined to give figures for how big the bank's foreign-exchange reserves had grown.
The bank, whose monetary policy aims to keep the crown steady within a 2.25 percent band to the euro, also lowered its certificate of deposit rate by 10 basis points to 1.35 percent
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