In July, Denmark's central bank, Nationalbanken, cut the rate itpays on deposits from banks to negative 0.2%, in effect chargingbanks for holding their money. The Danish experiment with rates isbeing watched worldwide, according to a Financial Timesstory posted on CNBC.

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Denmark is not a member of the euro zone, and Nationalbanken wasstriving to maintain the Danish kroner's peg to the euro asskittish investors looking for a safe haven moved money to Denmark.The negative yield could also encourage banks to lend more, ratherthan paying up to hold funds at the central bank.

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Central banks have been keeping official rates quite low toencourage growth, but negative rates are still a novelty, althoughSweden employed them in 2009 and 2010. But the story cites reportsthat the European Central Bank recently warned that its depositrate, currently at zero, could go negative.

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