SWEDEN NOT MOVING INTEREST RATE FROM 0.25

Sweden’s Central Bank said Thursday it will keep its interest rate at a record-low 0.25 per cent, despite signs that the economy is picking up. The Central Bank also said it would offer loans worth 100 billion kronor (13.9 billion dollars) to the commercial banks at a fixed interest rate in order to help secure favourable loans to commercial business and households.
The Riksbank projected that GDP would decline by 4.9 per cent this year, but grow 1.9 per cent in 2010 and 3.2 per cent in 2011.
Deputy governor Lars Svensson wanted to cut the repo rate to zero per cent while deputy governors Lars Nyberg and Barbro Wickman-Parak supported keeping the rate at 0.25 per cent but made a reservation over the growth forecasts, the Riksbank added.
The latest rate cut was announced in July - the latest in a row reducing the interest rate from 4.75 per cent in September 2008.