(Financial Post) Sweden is shaping up to be the first country to plunge its citizens into a fascinating — and terrifying — economic experiment: negative interest rates in a cashless society.
The Swedish central bank held its benchmark interest rate at -0.35% today, the level it has been at since July.
Although retail banks have yet to pass on that negative to rate to Swedish consumers, the longer it's held there the more financial pressure there is for banks to pass the costs onto their customers. That's a problem because Sweden is the closest country on the planet to becoming an all-electronic cashless society.
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