Denmark's central bank cut its key interest rate by 0.25 points to 0.2% today.
It also for the first time sent its lesser certificates and deposit rate into negative territory.
"The interest rate reduction is a consequence of the reduction by the European Central Bank of its monetary policy rates by 0.25 percentage points," the Danish bank said.
The Scandinavian country is a member of the European Union but is not a part of the 17-nation euro zone, where interest rates are set by the ECB.
Denmark has a fixed exchange rate policy with the euro that allows the krone to fluctuate within a 2.25% range.
The global financial crisis upset somewhat the close link between the euro and the krone. In October 2008, as many countries were lowering their rates to boost their economies, the Danish central bank was forced to increase its key rate to 5.5% to protect its krone, which like the other Scandinavian currencies came under pressure in the turmoil.
Denmark since then has moved closer to the ECB rate, which after today's rate announcement stands at a record low 0.75%.
The Danish rate cut, which was the third since May 24 as the central bank attempts to boost the economy, sent the certificates and deposit rate down to -0.20%. Analysts said this should help stabilise the Danish krone against the euro.
Denmark's Nationalbank also cut its discount rate to 0% and maintained its current accounts rate at 0%.
"In connection with the introduction of negative interest rate on certificates of deposit, the current account limits will be revised upward," the bank said in its statement.
Denmark's Nationalbank had already said its rates might be heading below zero, but insisted last month it had "the instruments to handle potential negative interest rates."
