STOCKHOLM: Sweden's central bank would probably need to cut the benchmark rate if it needs to make monetary policy more expansionary and fight the effects of the ongoing coronavirus pandemic, Deputy Governor Per Jansson said on Wednesday.

"It is probably the case that we would have to use the repo rate, because if policy needs to be significantly more expansionary, I have much more faith in the repo rate than I have faith in further asset purchases," Jansson said in a speech.

"It is hard to see that we can do a great deal more with asset purchases."