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Sweden Says Global Warming Could Alter Future of Monetary Policy

Mar 25 2021, 2:51 PM March 24 2021, 4:29 PM March 25 2021, 2:51 PM (Bloomberg) Global warming may force central banks to keep interest rates low. (Bloomberg) Global warming may force central banks to keep interest rates low. Sweden’s Riksbank, the world’s oldest central bank, warned on Wednesday that rising temperatures mean monetary policy can’t ignore the fallout of carbon emissions. “If climate change increases the risk of catastrophe, makes economic developments more uncertain and worsens growth prospects, it may lead to a lower long-term real interest rate,” the Riksbank said in its annual account of monetary policy. “One consequence of this could be that the policy rate is more often at its lower bound and the monetary policy room for maneuver is thus limited.”

The Drilldown: MPs move forward with environmental racism bill

The Drilldown: MPs move forward with environmental racism bill
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