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Sweden's central bank says it could ease interest rates

Staff Writer | February 16, 2017
Sweden's central bank warned it could still ease interest rates further to avoid a too rapid appreciation of the Krona - which might jeopardise its inflation target.
Sweden's central bank
Sweden   Riksbank kept its main monetary policy lever
The bank and decided to prolong its authorisation for intervention in foreign currency markets.

Riksbank keept its main monetary policy lever, the repurchase rate, unchaged at -0.50% on Wednesday.

"Economic activity is strengthening, but there is considerable political uncertainty abroad and the risks of setbacks have increased. For inflation to stabilise around 2.0%, a continued strong level of economic activity and a krona that does not appreciate too rapidly are required," it said in a statement following the decision.

"There is still a greater probability that the rate will be cut than that it will be raised in the near term," the Riksbank said.

As decided in December, its programme of government bond purchases was still set to run for the first six months of 2017, it said.

"The Executive Board has also taken a decision to extend the mandate that facilitates a quick intervention on the foreign exchange market."