Copenhagen/New Delhi, Dec 19: Close on the heels of the US and Japan cutting the benchmark rates to cope with the raging financial crisis, Denmark's central bank today slashed its key lending rate by 50 basis points to 3.75 per cent.

"Effective from today Danmarks Nationalbank's lending rate and the rate of interest on certificates and deposits are lowered by 0.50 percentage to 3.75 per cent," the apex bank said in a statement.

The discount rate and the current rate remain unchanged at 3.50 per cent, it added.

"The interest-rate reduction is a consequence of the developments in the foreign exchange market, where Danmarks Nationalbank during a period has purchased foreign exchange," the statement noted.

Meanwhile, the Bank of Japan today reduced its benchmark lending rate in the range of 0 and 0.25 per cent.

The central bank slashed the uncollateralized overnight call rate by 20 basis points to 0.1 per cent from 0.3 per cent, its second rate cut in two months.

Earlier this week, the US Federal Reserve had cut the key rate in the range of zero to 0.25 per cent as part of its effort to kick start the country's sagging economy.

Bureau Report