Did the Riksbank abandon negative rates too soon?

Photo by David Lundberg
Sveriges Riksbank: ended almost five years of negative rates in December by hiking the key repo rate to 0%

In December 2019, Sveriges Riksbank put an end to almost five years of negative rates, hiking the key repo rate to 0%. But sharply lower inflation in January prompted policy-makers and analysts to ask whether the hike came too soon.

On February 19, Sweden’s statistical agency said the consumer price index with a fixed interest rate (CPIF) had declined in January to 1.2%, its lowest level in more than four years, down from 1.7% in December. The central bank’s target is 2%.

The main driver of

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected]centralbanking.com to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: