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