The Sveriges Riksbank, the country’s central bank, ended a four-year experiment with a negative interest rate policy (NIRP) at the end of 2019 amid growing concern that it was pumping up a private sector debt bubble and distorting the financial system. Market commentators said that the move could herald the start of a global trend away from NIRP. The eurozone and Japan currently have negative rates.
Yet a finance ministry report released this month was interpreted as “a thinly veiled message to the central bank” that rates should be cut back below zero, says Bloomberg. With growth expected to come in at just 1.1% this year, it seems the government is keen for some monetary support.
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