STOCKHOLM--Sweden's central bank surprised analysts Wednesday,
opting to hold it main interest rate steady rather than cutting it
as it announced a range of measures to lift inflation closer to a
2% target.
The Riksbank left its main repurchase, or repo, rate at minus
0.25% which was unexpected. Analysts polled by The Wall Street
Journal had forecast a cut to minus 0.4%.
However, the world's oldest central bank didn't stand pat.
It said it would increase its bond buying program by between 40
billion Swedish kronor ($4.74 billion) and 50 billion kronor.
The Riksbank also said that increases in the repo rate, not
expected to begin until the second half of next year, would be
slower than previously thought.
The Swedish kronor strengthened against the euro, which fell to
9.27 kronor from 9.36 kronor.
Write to Charles Duxbury at charles.duxbury@wsj.com
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