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Sweden’s pension industry is about to get its first taste of life after negative interest rates.

Funds with a total of about EUR 565bn in assets have a lot at stake as their central bank becomes the first to exit the experimental monetary policy.

AP7 CEO Richard Grottheim looks forward to ending half a decade of negative rates | Photo: PR / AP7

With the rest of the world watching, the Swedish Riksbank is expected to raise its benchmark repo rate from minus 0.25 percent to zero on Thursday, ending half a decade of negative rates.

The policy lasted “far too long,” says Richard Grottheim, the chief executive of AP7, which oversees more than EUR 45bn in assets from Stockholm. Getting back to zero “will make it easier for us to invest short term, where the No. 1 risk no longer will be that the nominal value of cash gets eroded.”

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