Negative interest rates: Sweden surprises with larger cut

Move to boost inflation

The central bank of Sweden has surprised analysts by cutting interest rates further from -0.35% to -0.5%, as the issue of negative interest rates preoccupies investors.

The cut was larger than analysts had forecast, with the consensus expecting rates to be unchanged. Sweden's Riksbank (pictured) made the move in a bid to support a recovery in inflation towards its 2% target. It also said it was ready to intervene if the strength of the krona was likely to threaten a rise in inflation. In its most recent forecast, the bank cuts its estimates for CPI inflation in 2016 from 1.3% to 0.7% and 2.5% to 2.1% in 2017. BoE keeps rates on hold amid weaker inflation expectations In a statement, the central bank said: "The economy continues to strengthen bu...