Swedish Bank Cuts Deposit Rate to MINUS 0.25%

Started by sullivan, July 09, 2009, 07:06:45 PM

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sullivan

July 09, 2009, 07:06:45 PM
From Global Economic Trend Analysis

QuoteThere has been a lot of ludicrous recommendations recently to combat deflation by making deposit rates negative. I did not think any central bank would be dumb enough to try it. I thought wrong.

Today, Riksbank, Sweeden's central bank cut the deposit rate to -0.25% effectively charging savers interest on deposited money.
"The real menace of our Republic is the invisible government which like a giant octopus sprawls its slimy legs over our cities, states and nation. At the head is a small group of banking houses generally referred to as \'international bankers.\' This little coterie... run our government for their own selfish ends. It operates under cover of a self-created screen, seizes our executive officers, legislative bodies, schools, courts, newspapers and every agency created for the public protection."
John F. Hylan (1868-1936) - Former Mayor of New York City

abduLMaria

#1
July 10, 2009, 11:09:16 PM
this just gives people an incentive to buy gold, and maybe stocks if they
trust the stock market.

this is serious and not an Onion article ?  you know that humor magazine.
it looks real.  pretty amazing.  seems like it would give people an incentive
to pull their money out.
Planet of the SWEJ - It's a Horror Movie.

http://www.PalestineRemembered.com/!

joeblow

#2
July 11, 2009, 04:15:28 AM
I don't know where they got the minus from? It's still above zero at 0.25%.

ORIGINAL ARTICLE: http://www.svd.se/naringsliv/nyheter/ar ... 186401.svd

GOOD TRANSLATION: http://www.etaiwannews.com/etn/news_con ... s_Business

Swedish inflation rate more negative in June

Sweden's annual inflation rate dropped to a negative 0.6 percent in June, largely due to cheaper housing costs on the back of lower interest rates as well as reduced prices for health care, the country's statistics agency said Thursday.

The annual inflation rate in May was a negative 0.4 percent.

Statistics Sweden said however that the consumer price index rose by 0.2 percent from May to June. Higher prices for gas, package holidays and mail and telecommunications services contributed to that increase.

Earlier this month, Sweden's central bank, the Riksbank, made a surprise cut in the country's repo rate, slashing it by a quarter of a percentage point to 0.25 percent. The bank said the economic downturn seemed deeper than previously thought.

sullivan

#3
July 11, 2009, 06:18:57 AM
That's the repo rate, not the deposit rate.

See http://www.riksbank.com/templates/Page.aspx?id=32047 last paragraph

The minutes from the Executive Board's monetary policy discussion will be published on 16 July. The decision on the repo rate will apply with effect from Wednesday, 8 July. The deposit rate is at the same time cut to -0.25 per cent and the lending rate to 0.75 per cent. A press conference with Deputy Governor Barbro Wickman-Parak and Anders Vredin, Head of the Monetary Policy Department, will be held today at 11 a.m. in the Riksbank. Entry via the bank's main entrance, Brunkebergstorg 11. Press cards must be shown. The press conference will be broadcast live on the Riksbank's website,
"The real menace of our Republic is the invisible government which like a giant octopus sprawls its slimy legs over our cities, states and nation. At the head is a small group of banking houses generally referred to as \'international bankers.\' This little coterie... run our government for their own selfish ends. It operates under cover of a self-created screen, seizes our executive officers, legislative bodies, schools, courts, newspapers and every agency created for the public protection."
John F. Hylan (1868-1936) - Former Mayor of New York City
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