Riksbank defends corporate bond purchase programme
Central bank says increasing reliance on bond issuance warrants intervention
Sveriges Riksbank provided a detailed argument in favour of its corporate bond purchases, in a document published today (October 8).
The Swedish central bank started buying corporate bonds for the first time on September 14, in addition to its existing sovereign and covered bond purchases. It says the bond purchase programme aims to maintain low interest rates in the corporate bond market, securing sufficient credit supply for companies.
The Swedish central bank argues that the programme is
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