Sweden Stunner on Rates Seen Forcing Norges Bank to Act
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Sweden’s surprise interest-rate cut last week will probably prompt a Norges Bank response to shield the economy from a strengthening currency, according to DNB ASA, Norway’s biggest lender.
Policy makers in Oslo now have to contend with record low rates in Sweden and in the euro area, the nation’s top trading partners, after the Riksbank lowered its benchmark to 0.25 percent on July 3, matching an all-time low. The European Central Bank reduced borrowing costs a month earlier, with both pledging to keep policy loose for a long time.