Unconventional monetary policy by Sweden "won't be a bazooka"

Stockholm

SWEDEN'S central bank may be the next to adopt unconventional policies to fight falling prices, but it is unlikely to match the impact of others as the bond market is small, yields are low and banks are already flush with cash.

The European Central Bank (ECB) said last week it would pump billions of new money into the financial system through sovereign bond purchases, part of a plan to launch a "big bazooka" to revive the economy. The US Federal Reserve and Bank of England have taken similar steps.