Rate cuts not working: Riksbank's Nyberg

The impact of the Riksbank's rate cuts on the real economy has been weakened by a breakdown in the monetary transmission mechanism, Lars Nyberg, a deputy governor at the central bank, has said.

Nyberg said in Stockholm on Friday that the normal link between short-term market rates and its benchmark repo rate was broken, meaning that the impact of the 100 basis-points-worth of cuts that the central bank has made since mid-October had not been fully felt.

"Monetary policy is not an effective to

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