Thursday, July 2, 2009

Sweden Jumps The Shark

"The deposit rate is at the same time cut to -0.25 per cent and the lending rate to 0.75 per cent. "


The deposit rate is the "overnight rate of interest paid by the Riksbank on money held in accounts with banks."

So the central bank of Sweden is charging banks money to accept deposits. This is simply astounding. That is what I call deflationary fear.

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