Sweden for abandoning negative rates.
An unpleasant surprise for lovers of the Swedish krona was the introduction of a negative discount rate a year ago.
That is, now for keeping money on deposit in the national currency of Sweden, the account owner lost 0.5% per annum.
Quite a big loss for the deposit, if we add to this an inflation rate of 1.5% and a decline in the currency by more than 15% in relation to other monetary units.
According to recent statements, the Swedish government has strengthened the position of those who are ready to abandon such a policy, although it works great in the fight against deflation.
Recently, there has been an increase in Sweden's main economic indicators, which allows us to say that even the abandonment of negative rates will not lead to a sharp increase in inflation.
At the same time, there remains a possibility of an even greater reduction in the discount rate, but the Central Bank will take this measure only if inflation indicators tend to increase.