Sweden for abandoning negative rates.
The introduction of a negative interest rate a year ago came as an unpleasant surprise to fans of the Swedish krona.
This means that now, for keeping money on deposit in the national currency of Sweden, the account owner lost 0.5% per annum.
This is quite a significant loss for a deposit, if you add to this the inflation rate of 1.5% and the currency’s decline by more than 15% compared to other currencies.
Recent statements have strengthened the position of those in the Swedish government who are ready to abandon this policy, even though it works well in combating deflation.
Sweden's key economic indicators have recently been showing signs of growth, suggesting that even abandoning negative interest rates will not lead to a sharp increase in inflation.
At the same time, the possibility of an even greater reduction in the key rate remains, but the Central Bank will take this measure only if inflation indicators tend to rise.
