Sweden cuts rates deeper into negative territory, steps up currency war

Stockholm

SWEDEN's central bank cut its main interest rate deeper into negative territory on Thursday and said it was ready to do more to revive inflation, fuelling a currency war even as its economy booms and concerns over a housing bubble grow.

As policymakers battle to weaken their currencies against global rivals, the Riksbank chopped its repo rate to -0.50 per cent from -0.35 per cent, adding fuel to a borrowing boom that helped push house prices up 12 per cent over the last year. It also said that it was looking at other ways to ease policy - including currency intervention.