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Central Banks

Riksbank Pushes Back After ECB Remarks on Certificate Auctions

A Riksbank deputy governor took issue with European Central Bank official Isabel Schnabel’s view that recent certificate auctions by the Swedes suggest challenges in steering short-term interest rates. 

Since Stockholm-based policymakers started trying in February to remove all excess liquidity from the banking system by increasing issuance volumes, banks kept as much as 20% of funds in overnight deposits rather than investing the money in higher-yielding central-bank securities.