Riksbank to Cut Rates as Deflation Seen in 2014, NIER Says
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Sweden’s central bank will cut interest rates again this year as deflation takes hold in the largest Nordic economy, the National Institute of Economic Research said.
“The weak outlook for inflation means that the Riksbank will cut its repo rate to 0.50 percent in July,” the Stockholm-based institute said in a report published today. “Further low central bank policy rates abroad will contribute to the repo rate remaining low for a long period. A first rate hike in Sweden is not expected until late 2015.”