Riksbank expects the economy to expand 2.7% this year and 3.3% in 2016. Meanwhile, consumer prices could only inch up 0.1% in 2015, well below the central bank’s 2% target. [Rate Surprise in Sweden]
More than 20 global central banks have lowered rates this year, indicating today’s news from Sweden is far from stunning. Nor is Riksbank’s decision to move its repo rate deeper into negative territory.
Since the collapse of Lehman Brothers, global central banks have lowered interest rates 550 times, or once every three trading days and “zero interest rate policies across the globe now support 83% of the world’s equity market capitalization,” according to Bank of America Merrill Lynch.
iShares MSCI Sweden ETF
