Home MoneyBanks Sweden’s Central Bank Cuts Benchmark Rate to Zero

Sweden’s Central Bank Cuts Benchmark Rate to Zero

by Yomna Yasser

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

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