Swedish Riksbank

Swedish Riksbank Policy Continues to Be Very Accommodative

April 27, 2017

A released statement after today’s Executive Board meeting signaled that the negative 0.50% repo rate will not be raised above that level until at least mid-2018, later than indicated previously, and extended the program of government bond purchases through the second half of 2017. By end-2017, SEK 290 billion will have been bought under this […] More

Three Central Bank Meetings, Weaker Oil, and Several Data Releases

April 27, 2017

The dollar is up 0.5% against the kiwi, 0.4% relative to the loonie, and 0.3% against the euru and Aussie dollar but flat against sterling and softer versus the peso. Stocks are slightly lower in the U.S., Europe and Japan. Ten-year sovereign bond yields fell six basis points in Germany, France and Italy and by […] More

Swedish Riksbank Retains Very Accommodative Stance

February 15, 2017

The central bank executive board Kept the repo rate at negative 0.50%. Released a statement proclaiming a further rate cut to be likelier in the near term than any hike and forecast the repo rate no higher than zero even as late as the first quarter of 2019. Agreed to continue quantitative stimulus (bond purchases) […] More

Swedish Riksbank

December 21, 2016

The final Executive Board meeting of 2016 produced a An unchanged negative 0.5% repo rate. That’s been the level since a 15-basis point cut last February. The rate turned negative a year earlier in February 2015 and has not been above zero since a 25-basis point reduction in October 2014. Unchanged projected inflation of 1.0% […] More

Swedish Riksbank

October 27, 2016

The Executive Board’s statement after agreeing to keep a negative 0.50% central bank interest rate has plenty of forward guidance painting a picture of even more monetary accommodation. The interest rate is unlikely to rise until early 2018, six months later than imagined earlier. Asset buying in the second half of 2016 will be no […] More

Swedish Riksbank Makes No Further Policy Changes

September 7, 2016

Sweden’s repo rate stays at negative 0.5%, having been cut from zero by 10 basis points initially in February 2015, 15 bps in March 2015, 10 bps in July 2015 and, most recently, 15 bps earlier this year in February. A program of asset purchases that had been last expanded by SEK 45 billion to SEK […] More

Swedish Repo Rate Kept at -0.50%

July 6, 2016

The Swedish Riksbank introduced a negative interest rate of -0.10% in February 2015 cut such subsequently at three later meetings:  by 15 bps in March 2015, 10 bps in July 2015 and, most recently by 15 bps in February of this year.  Officials complement the negative interest rate with quantitative stimulus (QE) via bond buying, […] More

Swedish Riksbank Executive Board Extends Quantitative Easing

April 21, 2016

Sweden’s negative repo rate was left at -0.50%.  It took seven spaced reductions between December 2011 and October 2014 to cut the policy rate from 2.0% to zero.  Negative rate policy was introduced in February 2015 initially at -0.10%, then lowered by 15 basis points in March 2015, 10 bps in July 2015, and 15 […] More

A Focus on Central Banks, Commodities and China

April 21, 2016

The ECB just announced  decisions from today’s third Governing Council meeting of the year.  No further rate changes were enacted.  At the prior meeting on March 10, the refinancing rate was sliced 5 basis points to 0.0%, the deposit rate was moved 10 basis points more deeply into the red to -0.40%, and the marginal […] More

Sweden’s Negative Central Bank Interest Rate Becomes Even More So

February 11, 2016

The Riksbank experience with monetary policy normalization after the Great Recession preceded the Fed’s current attempt by over five years and serves as a lesson of what can go wrong.  From a low of 0.25% at the beginning of 2010, the Swedish repo rate was lifted by a full percentage point that year and by […] More