Riksbank governor sees QE more effective than rate cuts

Bloomberg

Stimulus measures like bond purchases are more effective than interest rate cuts to support the economy at this point in time, Riksbank Governor Stefan Ingves said.
“Altogether, these measures entail a monetary policy that is aimed in full at attempting to alleviate the negative effects of the corona pandemic on the Swedish economy,” Ingves said, according to minutes of the central bank’s June 30 policy meeting. The scope for further rate cuts from the current level of zero is “not very large,” he added.
“An important question is whether we should also cut the repo rate,” the minutes published on Friday showed her as saying. “My assessment is that today’s package of measures is significantly more effective and accurate than a rate cut of 25 to 50 basis points.”