Swedish central banker: repo rate cut most effective tool to lower market interest rates

STOCKHOLM: Cutting the benchmark repo rate would be the most effective tool to bring down market interest rates from current levels should Sweden's central bank need to do so, Deputy Governor Martin Floden said on Thursday.

"The only method left is the benchmark rate," Floden told reporters. "But if, on the other hand, duration premia rise in a problematic way, or risk premia or different spreads start taking off, then asset purchases again can have a role to play."