Swedish Interest Rates at Record Low
Interest rates slashed by 1 % have given Sweden lowest rates ever. The Swedish Central Bank announced on Wednesday that the key interest rate will be cut by one percentage point to a record low 1.0 percent. This marks the lowest official interest rates since records began in 1907.
In a statement the bank warned that more troubled times loom ahead. The bank says that cuts are necessary in order to dampen the fall in production and employment and to reach the inflation target of 2 %. Indeed, the interest rate may in fact have to be cut further within the next 6 months.
The Swedish mortgage company SBAB was first to cut their mortgage rates in response to the move by the central bank, and were swiftly followed by Sweden’s four major banks.