Swedish c.bank keeps policy on hold, says pandemic makes future very uncertain

Credit: REUTERS/STAFF

Sweden's central bank kept its policy on hold on Tuesday as expected, saying that the economy was beginning to pick up but that support from both monetary and fiscal policy would be needed to support growth for a long time.

STOCKHOLM, Sept 22 (Reuters) - Sweden's central bank kept its policy on hold on Tuesday as expected, saying that the economy was beginning to pick up but that support from both monetary and fiscal policy would be needed to support growth for a long time.

"Although the recovery will continue in the coming years, the effects of the pandemic on the global economy are expected to be prolonged, and future developments are fraught with risks of setbacks, in both the short and longer term," the central bank said in a statement.

The Riksbank has launched a raft of measures including loans and an expanded programme of asset purchases to support credit supply and liquidity in the banking system to ease the effects of the pandemic on the economy. Rates have stayed at 0%.

Swedish rates and inflation:http://tmsnrt.rs/1qEN4Rz

(Reporting by Stockholm Newsroom; editing by Niklas Pollard)

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