Sweden Riksbank keeps key Repo rate unchanged at -0.5%

At its monetary policy meeting held today, the Swedish central bank, the Riksbank kept its key benchmark Repo rate unchanged at -0.5%, while leaving doors open for rate cuts in the future.

Meanwhile, EUR/SEK dropped sharply to 9.4143 on the Riksbank’s status-quo, before recovering ground to now trade around 9.4300 levels, down -0.11% on the day.

Key Headlines from the policy statement:

There is considerable uncertainty over economic developments abroad and this has increased as a consequence of result of British referendum on EU

Executive board remains highly prepared to make monetary policy even more expansionary, if necessary, even between ordinary monetary policy meetings.

There is still scope to cut repo rate further.

Economic activity in Sweden is continuing to strengthen, but there is considerable uncertainty over economic developments abroad and this has increased as a consequence of result of British referendum on

Assumes so far that effects on Swedish economy from Brexit vote will be relatively limited