Lessons from the Riksbank’s negative rates experiment

Sweden is the only nation to have implemented negative rates and then returned them to ‘normal’ territory. What can central bankers learn from the Swedish experience?

In December 2019, after almost five years experimenting with negative rates, Sveriges Riksbank lifted its key repo rate back to 0%. In so doing, it became the first central bank to have implemented negative interest rates that has moved back to ‘normal’ territory.

Sweden’s experiment with negative rates sparked a fierce debate among policy-makers, academics and analysts in Sweden. Critics claimed negative rates distort money markets by lowering the entire yield curve and effectively impose a

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