Riksbank Cuts Key Rate to Negative
A flag flies outside the headquarters of the Riksbank, Sweden's central bank, in Stockholm.
Photographer: Casper Hedberg/BloombergThis article is for subscribers only.
The Swedish Riksbank unleashed unprecedented stimulus with a negative interest rate and quantitative easing in a race to stem a deflationary spiral blamed by some economists on premature policy tightening.
The Riksbank lowered its repo rate to minus 0.10 percent from zero. A cut had been predicted by six of the 18 economists surveyed by Bloomberg, while the remainder forecast no change.