Quote from an FT editorial, May 2, 2015 on the Riksbank’s monetary policy:
Another central bank announcement this week underlines the foolishness of tightening monetary policy too quickly. The Riksbank, the Swedish central bank, said it would expand its quantitative easing programme in amounts that imply it will end up owning about 15 per cent of all Swedish government bonds.
The Riksbank has already lowered its repo rate to minus 0.25 per cent, the world’s lowest, and may be compelled by the threat of deflation to cut it further. Yet the central bank may not have been forced to ease so aggressively had it not prematurely raised interest rates in 2010 and 2011, and then failed to reverse course quickly enough when inflation sank below target.