Swedish Central Bank Surprises with a Rate Cut

Sweden’s central bank cut its benchmark interest rate to -0.35 percent in a surprise move on Thursday and expanded its asset purchase programme in a bid to reinforce tentative signs that long-stagnant consumer prices are finally picking up.

The bank said that uncertainty abroad had increased and it was difficult to assess the consequences of the situation in Greece.

A large majority of analysts in a Reuters poll had forecast the Riksbank would keep its already ultra-loose policy unchanged after the latest inflation figures gave it some breathing room in its fight to fend off the threat of deflation.

The Riksbank has cut rates repeatedly over the past year to boost inflation that is far below the bank’s target, the latest easing coming in March as strengthening of the crown risked breaking an upward trend in consumer prices.

via CNBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza