Mon. Sep 28th, 2020

Sweden ends negative interest rates; Bank of England decision looms – business live

Rolling coverage of the latest economic and financial news

8.59am GMT

Sweden’s interest rate rise is a small but significant milestone as central bankers try to extricate themselves from a decade of loose monetary policy.

Significantly, the Riksbank is ending negative interest rates while still continuing its asset-purchase programme (buying bonds with new money to stimulate growth).

Riksbank hike rates to 0% to end period of sub-zero rates while maintaining government bond purchases – different to the ECB that sees the APP as the marginal policy tool when tightening. RB seem negative consequences of sub-zero rates too detrimental to maintain the current [1]

stance, and with the latest inflation reports suggesting CPIF is returning to the 2% target they have decided to strike now. Notable dissent on the decision from Deputies Breman and Jansson – former suggested the hike to come in H1 2020. [2]

Forward guidance of the repo rate suggests 0% is here to stay over the coming years, however. Risks remain in the current global climate for another cut but the nature of this hike suggests the threshold to re-enter negative territory is much higher than previous. [3]

8.39am GMT

Newsflash: Sweden’s central bank has raised interest rates, to the heady heights of ZERO!

#Sweden ends Sub-ZERO experiment: Riksbank raises repo rate to 0.0% from -0.25%. pic.twitter.com/at9x4UsVMO

I see the Riksbank have gone back to 0% interest rates as expected. Sensible.

Pacing through their presentation I see the below chart covers most of the potential future outcomes out there!!

(via https://t.co/TWBIrVXW4h ) pic.twitter.com/RSpHH77kEd

Continue reading…Rolling coverage of the latest economic and financial newsLatest: Riksbank hikes interest rates to… zeroBoE press conference audio feed hackedSome City traders got crucial head start on Carney commentsBank sets interest rates at noonTry the Guardian Business Christmas Quiz! 8.59am GMTSweden’s interest rate rise is a small but significant milestone as central bankers try to extricate themselves from a decade of loose monetary policy.Significantly, the Riksbank is ending negative interest rates while still continuing its asset-purchase programme (buying bonds with new money to stimulate growth).Riksbank hike rates to 0% to end period of sub-zero rates while maintaining government bond purchases – different to the ECB that sees the APP as the marginal policy tool when tightening. RB seem negative consequences of sub-zero rates too detrimental to maintain the current [1]stance, and with the latest inflation reports suggesting CPIF is returning to the 2% target they have decided to strike now. Notable dissent on the decision from Deputies Breman and Jansson – former suggested the hike to come in H1 2020. [2]Forward guidance of the repo rate suggests 0% is here to stay over the coming years, however. Risks remain in the current global climate for another cut but the nature of this hike suggests the threshold to re-enter negative territory is much higher than previous. [3] 8.39am GMTNewsflash: Sweden’s central bank has raised interest rates, to the heady heights of ZERO!#Sweden ends Sub-ZERO experiment: Riksbank raises repo rate to 0.0% from -0.25%. pic.twitter.com/at9x4UsVMOI see the Riksbank have gone back to 0% interest rates as expected. Sensible. Pacing through their presentation I see the below chart covers most of the potential future outcomes out there!!(via https://t.co/TWBIrVXW4h ) pic.twitter.com/RSpHH77kEd Continue reading…

Leave a Reply

Your email address will not be published. Required fields are marked *