COPENHAGEN, Oct 27 Reuters Denmark39;s central bank raised its key interest rate by 0.60 percentage points to 1.25 on Thursday to its highest level in thirteen years, following a rate hike earlier in the day by the European Central Bank.

Denmark, the first country in the world to impose negative rates in 2012, last month broke with a decadelong experiment of negative interest rates as it lifted its key rate into positive territory.

The interest rate increase is a consequence of the increase by the European Central Bank of its main monetary policy rate, the central bank said in a statement.

Earlier on Thursday, the ECB raised its benchmark deposit rate by 75 basis points to 1.5 and signalled further hikes.

Denmark39;s move puts its main interest rate at its highest level since August 2009.

Unlike most central banks, the Danish central bank39;s sole mandate is to keep the crown currency stable against the euro, an objective it upholds through currency interventions and interest rate moves.

Normally, the central bank follows the ECB39;s rate moves, but this time it raised rates less, Danske Bank chief economist Las Olsen said in a note.

This time they have chosen a slightly smaller interest rate increase because they actually want a slightly weaker crown, Olsen added.

The crown currency weakened slightly after the central bank39;s move, trading at 7.44 crowns to the euro at 1513 GMT.

Denmark39;s current account rate, which is the benchmark rate, and the…