Riksbank cuts to new low, despite signs of overheating
Central bank pushes policy rate 15bp deeper into negative territory
Sweden's central bank, Sveriges Riksbank, cut its headline interest rate further below zero today (February 11), with policy-makers torn between disappointing inflation and an economy showing signs of overheating.
The executive board voted 4:2 to cut the repo rate by 15 basis points, hitting a new record low of -0.5%. Deputy governors Martin Flodén and Henry Ohlsson both voted to hold rates steady. The programme of quantitative easing (QE) remains unchanged.
The Riksbank said concerns about
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