Sweden Backs Away From Negative Rates Despite Softening Economy

Sweden’s central bank is this month expected to swim against the tide of global monetary policy by raising interest rates even as the Scandinavian country’s economy softens, the Financial Times reported. A manufacturing sentiment survey published on Monday showed the lowest activity reading since 2012, the latest in a series of gloomy economic data. Growth in the third quarter was weaker than the Riksbank expected, according to figures released on Friday, which showed the economy grew 0.3 per cent compared with the previous quarter and 1.6 per cent year on year. Growth in both the first and second quarters was revised downwards. “It’s bad timing to hike rates now,” said Christina Nyman, former deputy head of the Riksbank’s monetary policy department and now chief economist at lender Handelsbanken. Read more