Sweden cuts repo rate to -0.35% on uncertainty from Greece
Sweden's Riksbank has cut its main repurchase, or repo, rate to minus 0.35% from minus 0.25%, saying the Swedish krona has become stronger than the central bank had forecast. "In the euro area, economic activity is strengthening, but the events in Greece over the past few days have substantially increased the uncertainty," the bank said in its announcement on Thursday, citing risks to the upturn in inflation in Sweden. It added that the repo rate is expected to remain at minus 0.35% for just over a year, noting it leaves open the possibility of cutting that rate further. The Riksbank also said it will increase its bond-buying program by 45 billion Swedish kronor ($5.32 billion) from September until the end of the year.
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