Stockholm, Sweden (AFP) – Sweden’s central bank announced Thursday a 10-basis-point cut to its key interest rate, the repo rate, to -0.35 percent, and increased its bond purchases, citing uncertainty over the Greek crisis.
“Inflation is rising and economic activity in Sweden is continuing to strengthen. But uncertainty abroad has increased and it is difficult to assess the consequences of the situation in Greece,” the bank said in a statement.
“In this uncertain environment, monetary policy needs to be even more expansionary to ensure that inflation continues to rise towards the target of 2.0 percent,” it said. The Riksbank has been trying to lift inflation since it stalled at the end of 2012, and has kept the repo rate in negative territory, which encourages spending, since February.