At a press conference on Wednesday, the head of the Swedish Central Bank admitted that interest rates could potentially go as low as -1.5%, and quipped that Swedes likely wouldn’t even protest. Other countries implementing negative interest rate policies are producing lukewarm results that don’t address the root causes of currency devaluation. Nor do they change the bleak overall trajectory of fiat financial systems across the globe.
Also read: Bitcoin’s Survival Depends on an Uncensorable Internet
A Dreary Forecast, But Too Lazy To Care
Stefan Ingves, governor of the Swedish Central Bank, implied on Wednesday that Swedes are too comfortable to be concerned about negative interest rates. Citing the convenience of online banking and mobile payment systems, Ingves doesn’t think people will be hiding money in their mattresses anytime soon. This observation followed his confirmation that Sweden could possibly go from -0.25% all the way down to a -1.5% interest rate if deemed necessary.
The Riksbank leadership takes an arguably optimistic view of things long term, hoping to potentially hike rates to 1% by 2021. This is despite a currently dreary economic climate. Yields on 10-year government bonds in Sweden dipped below zero the same day Ingves made his remarks. At the same time in Denmark, where the national interest rate is -0.65%, yields on all government bonds were plunging into negative territory in a historic, if depressing milestone.
Switzerland, Denmark, Sweden, and Japan are all experimenting with negative interest rate policies (NIRP) in bids to stimulate uniquely embattled economies. Due to an influx of safe haven-seeking capital, the Swiss franc has appreciated over 80% against the USD in the last decade. To balance this effect, the Swiss National Bank has interest set at -0.75%. The Bank of Japan has continued at
