July 1, 2020 / 7:46 AM / 12 days ago

Swedish c.bank holds rates, expands QE purchases to fight pandemic downturn

STOCKHOLM, July 1 (Reuters) - Sweden’s central bank held its benchmark rate unchanged at 0% as expected on Wednesday and expanded its asset purchase programme to 500 billion crowns ($53.63 billion) as it looks to soften the effects of the novel coronavirus pandemic on the economy.

“To avoid an unnecessarily prolonged and deep decline in the economy and inflation, monetary policy needs to continue to contribute to the smooth functioning of credit supply in the economy and to keeping interest rates low,” the central bank said in a statement.

So far, the Riksbank has not cut rates to offset the effects of the pandemic on the economy but has focused on balance-sheet measures and loans in dollars and crowns to keep financial markets liquid. ($1 = 9.3236 Swedish crowns) (Reporting by Stockholm Newsroom; editing by Niklas Pollard)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below