Riksbank’s normalisation faces darker global outlook

Stockholm, Sweden

The slowdown of the global economy in 2019 may hamper the normalisation process initiated by Sveriges Riksbank in December 2018.

The executive board of the Swedish central bank increased interest rates on December 20 for the first time in over seven years. However they remain in negative territory at –0.25%.

This ultra-loose monetary policy contributed to solid growth and lower unemployment, the central bank says. However, the Riksbank has struggled to achieve its 2% annual inflation target

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