October 15, 2019 / 11:52 AM / a month ago

Sweden's central bank bats off "deep" recession talk

LONDON, Oct 15 (Reuters) - Sweden’s central bank chief said on Tuesday that he did not expect the country to slump into a deep recession and that a real shock downturn would require more traditional stimulus and money printing from the government.

Sweden has enjoyed years of strong growth and has been signalling possible interest rate rises in recent months. But the effects of a U.S./China trade spat and worries over Brexit now look to be having an impact on the economy.

Speaking at a conference in London, Riksbank Governor Stefan Ingves said that if interest rates had to be pushed further into deeply negative territory such as -5 or -10%, that would require more traditional “money creation” from the government too.

“We don’t foresee a deep recession,” he said. (Reporting by Marc Jones and Dhara Ranasinghe)

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