Highlights from the Riksbank Minutes.......>

RIKSBANK: Highlights from the Riksbank Minutes (2/2)

- Floden: "lowering the repo rate today would have been counterproductive. The

economy would not benefit from an even weaker krona. The impact on lending rates

would be uncertain as stress on the financial markets is high. And, in addition,

stimulating general demand is of doubtful value when the economy has largely

been shut down." "I do not rule out the possibility that it can be motivated to

lower the repo rate to negative levels once the economy has started to open up."

- Breman: "I would like to emphasise that I do not in any way exclude the

possibility of a rate cut in the future. For me it is not a question of "saving

our ammunition", but of implementing the monetary policy measures that create

the best conditions for a good recovery in the Swedish economy in the long run."

"The repo rate path could have contained a probability of a rate cut, for

instance, in the autumn. The problem with this is that it could give the

impression of a precision that we cannot have at present."