Riksbank keeps interest rate at 0.25 percent
Paul O'Mahony · 22 Oct 2009, 09:33
Published: 22 Oct 2009 09:33 GMT+02:00
- Most Swedes fail to prep for higher interest rates (19 Oct 09)
- Negative interest rate to boost growth: Riksbank (03 Sep 09)
- Interest rates to stay low until autumn 2010 (03 Sep 09)
Sweden's financial recovery is well underway but will take some time, the Riksbank's Executive Board said in a statement on Thursday, adding that its decision was aimed at contributing to a stable recovery and attaining the country's inflation target of 2 percent.
The central bank also noted that while the situation on financial markets was much improved, it had not yet returned to pre-crisis levels. As such, the Riksbank said it had decided to offer further loans amounting to 100 billion kronor to the country's banks. These would be at a fixed interest rate and with a maturity of 11 months.
"This should contribute to continued lower interest rates on loans to companies and households," the Riksbank said.