Riksbank board at a loss over falling inflation, minutes suggest
Swedish economy ‘needs two different policy rates: one for households and one for companies'
Members of the Riksbank's executive board are bewildered by Sweden's rapid drop in inflation, but confident its decision to cut interest rates to zero will reverse the trend, according to minutes published today.
The central bank cut its benchmark repo rate by 25 basis points to 0% on October 27 after monthly inflation turned negative in September. The unanimous decision brought an end to the Riksbank's strategy of using monetary policy to ‘lean against' growing household debts.
It also brought
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