Swedish Central Bank Surprises with a Rate Cut

Sweden’s central bank cut its benchmark interest rate to -0.35 percent in a surprise move on Thursday and expanded its asset purchase programme in a bid to reinforce tentative signs that long-stagnant consumer prices are finally picking up.

The bank said that uncertainty abroad had increased and it was difficult to assess the consequences of the situation in Greece.

A large majority of analysts in a Reuters poll had forecast the Riksbank would keep its already ultra-loose policy unchanged after the latest inflation figures gave it some breathing room in its fight to fend off the threat of deflation.

The Riksbank has cut rates repeatedly over the past year to boost inflation that is far below the bank’s target, the latest easing coming in March as strengthening of the crown risked breaking an upward trend in consumer prices.

via CNBC

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