Riksbank Pushes Back Rate Rise Forecast, Sparking Sharp Krona Drop

Sweden’s Riksbank said it will hold its main rate steady longer than previously expected and announced an 18-month bond-buying programme to start from July — the latest major central bank to take a more dovish shift on monetary policy. The Riksbank, which on Thursday kept its repo rate at a quarter of a point below zero, said it will purchase government bonds for a nominal value of SKr45bn (€4.2bn) from July until December 2020. It added that its benchmark interest rate will remain at minus 0.25 per cent “for a somewhat longer period of time than was forecast in February”. The Swedish krona, which fell about 0.2 per cent just before the announcement, extended that to about a 1 per cent decline against the euro, in line for its worst day since November 2017. One euro recently bought SKr10.6341, marking the weakest level since last summer. It fell to its lowest against the dollar since 2003. Read more