Riksbank’s pandemic QE eased financing conditions, says research

Swedish central bank’s purchases boosted equities, depreciated krona and cut bond yields

Photo: Sveriges Riksbank

Research from Sweden’s central bank says its asset purchases during the pandemic helped boost equity prices, while depreciating the krona’s exchange rate.

Sveriges Riksbank’s purchases also “contributed to more expansionary financial conditions via lower interest rates, in particular on municipal bonds and covered bonds,” says author Peter Gustafsson.

The Riksbank started purchasing government bonds in 2015 in a bid to boost below-target inflation. When the Covid-19 pandemic started, it added

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