Sweden’s Central Bank Cuts Benchmark Rate to Zero

Big 5

Sweden’s central bank cut its main interest rate to zero Tuesday, in a bid to boost inflation which has once again fallen below expectations.

The Riksbank lowered its main repurchase agreement rate to zero from a previous level of 0.25%, which was a slightly bigger reduction than expected.

Analysts asked by the Wall Street Journal had forecast a cut to 0.05%.

The Riksbank last cut borrowing costs in July in an effort to lift an inflation rate that has been stuck around zero for most of this year, well below the 2% target set for the central bank by lawmakers.

Source: Bloomberg