Swedish Riksbank Halves Repo Rate to 1.0% and an Easing in Sri Lanka as Well
February 11, 2009
As in December, Swedish monetary officials cut their benchmark interest rate by more than markets had expected. The rate was reduced 100 basis points and is now 375 basis points lower than at the start of October. A statement was released, which cut price and growth forecasts for 2009 sharply, bumped down 2010 growth more moderately, flagged a likely further rate reduction in April, but retained optimism about 2011 when real GDP is projected to advance 3.2% and interest rates are expected to be raised. Today’s easing was necessary to keep output and employment from getting too weak and inflation from “becoming too low.”
The Central Bank of Sri Lanka cut its key rates today by a lesser 25 basis points. However, this was the first policy change in two years, and officials released the following statement of explanation.
Copyright 2009 Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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