Riksbank Reduces Rates as Disinflation Hurts Credibility
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Sweden’s central bank cut its main interest rate for the first time in a year and signaled it won’t tighten policy until the start of 2015 to combat deflation in the largest Nordic economy.
The repurchase rate was lowered by a quarter of a percentage point to 0.75 percent, the first cut since December 2012, the Stockholm-based bank said today in a statement. The move was predicted by 16 of the 22 economists surveyed by Bloomberg. The bank sees its key rate at 0.71 percent in the fourth quarter next year and at 1.88 percent in the same quarter the following year.