Europe’s post-subzero rate faces even bigger test

STOCKHOLM: Riksbank officials are finding out that ending negative interest rates is far easier than convincing people the policy will stick.

Little more than a month since Sweden’s new benchmark level officially kicked in – after the central bank raised it to zero in December – the jury is still out on the move. The narrative of sustainably strong inflation that the Riksbank clung to while justifying the increase looks set to unravel, leaving investors to speculate whether it might eventually need to revert to more stimulus.