Denmark's central bank Nationalbank announced Thursday that it had decided to cut its lending rate, according to reports reaching here from Copenhagen.

"The lending rate and the rate of interest on certificates are lowered by 0.75 percentage points to 2.25 percent. The discount rate and the interest rate on the banks' current accounts with Nationalbank are lowered by 0.75 percent to 2.75 percent. The reduction will have effect as from March 6, 2009," said the bank in a statement.

"The interest-rate reduction is a consequence of the lowering by 0.50 percent to 1.50 percent in the European Central Bank's rate on the main refinancing operations. Denmark Nationalbank's interest rates are further reduced by 0.25 percent," the statement added.

Denmark is one of the European Union member, but not part of the 15-country euro zone. The Nationalbank always follows the European Central Bank to raise or decrease its key rates.