Swedish 7-Day Repo Rate Held at 0.00%
September 22, 2020
A statement released by the Swedish Riksbank after officials voted to leave the 7-day repo rate unchanged at zero percent proclaimed, “The Swedish economy has now begun to recover after having fallen sharply in the spring. But the way back is long and fraught with uncertainty. To provide support to economic developments and help inflation to rise towards the target, the Riksbank is continuing its asset purchases and offering liquidity in all the programs launched so far this year.” Projected inflation in 2021 and 2022 was revised slightly downward, and a rise of the repo rate is not anticipated before late 2023 at the earliest. The repo rate had been negative from February 2015 until January 2020, bottoming at -0.50%, prior to a pair of 25-basis point hikes restored the 0% level.
Copyright 2020, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
ShareThis
