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Swedish c.banker Floden says shouldn't cut rates only to weaken crown
March 9, 2016 / 8:59 AM / 2 years ago

Swedish c.banker Floden says shouldn't cut rates only to weaken crown

STOCKHOLM, March 9 (Reuters) - Rate cuts should not be used simply to weaken the crown currency, Riksbank Deputy Governor Martin Floden said on Wednesday, adding record low rates were beginning to lose effect on borrowing costs.

“I think that it is at least more problematic to use the repo rate if it only affects the exchange rate,” Floden told reporters.

He said that one reason he voted against the decision in February to cut the benchmark rate 15 basis points to -0.50 percent was that rate cuts were starting to have less effect on lending rates. (Reporting by Simon Johnson; Editing by Daniel Dickson)

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