World’s Only Escapee From Negative-Rate Trap Isn’t Wavering

Half a year since the Riksbank became the world’s only central bank to engineer an escape from the shackles of sub-zero monetary policy, its officials are in no mood to return there.

Even a pandemic that could shrink Sweden’s economy by more than 6% this year hasn’t swayed the institution from its determination to avoid a measure that it tried so hard to shake off. Instead, officials meeting in Stockholm this week have insisted their balance sheet is the main weapon against the ravages the coronavirus is inflicting on growth.