Stockholm: Sweden’s central bank held its benchmark repo rate at -0.35 per cent as expected on Thursday and said it was ready to do more if inflation does not continue to pick up, including further rate cuts or asset purchases. The Riksbank has cut rates three times this year despite strong growth and worries about an overheated housing market, as it tries to boost consumer prices which have been flat or falling for much of the last three years.
“Economic activity in Sweden is strengthening and inflation is showing a clear upward trend,” the bank said, adding that despite global uncertainties, the economic outlook and inflation prospects were little changed since it last met in July.
“The Riksbank remains highly prepared to make monetary policy even more expansionary in the event of inflation prospects deteriorating.”
The large majority of analysts in a Reuters poll had forecast the Riksbank would keep already ultra-loose policy unchanged after prices fell less than expected in July.
