Riksbank's defends bold move in clear language

Sweden's Riksbank shocked the markets with an aggressive repo rate cut to -0.50 percent, as it said, to safeguard the inflation target.

As a leading inflation targeter, the Riksbank is mindful of "the risk of weakening confidence in the inflation target and of inflation not rising towards the target as expected".

"The important thing is that the trend in inflation approaches the target and that confidence in the inflation target is not weakened. The Executive Board therefore still has a high level of preparedness to make monetary policy even more expansionary, even between the ordinary monetary policy meetings."

Trademark plain talk from the world's most transparent central bank.