The Riksbank: “The interest rate can be lowered much more”

The Swedish repo rate is now negative for the first time in the history of the Riksbank, an unconventional measure aimed at boosting inflation. During a press conference after the announcement, the Governor of the Riksbank, Stefan Ingves, said that this was just the first step, and that interest rates may be lowered much more. In addition to Thursday’s rate cut, the Riksbank is also planning to buy government bonds worth SEK 10 billion.