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interest rates

Central Bank Slashes to 0.5%

Published tisdag 21 april 2009 kl 10.26
Central Bank head under a presentation promising positive growth by 2010

Sweden’s interest rates have been cut to a historic low. On Tuesday the Central Bank announced a lowering from 1% to just 0.5%. It is hoped that this will make borrowing easier, boosting Sweden’s economy, which has been hard hit by the financial crisis.

Central bank head Stefan Ingves says that this action is needed as Sweden’s economy faces a 2009 that could be as bad as the crisis of the 1930s.

Bank experts predict that the main interest rate will remain this low for at least the next two years. The head of the Swedish National Economic Institute applauds the action, and the long term commitment to low rates.

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