In a sign of what may be coming the UK’s way in future months the Swedish central bank (the Riksbank) has just cut its key interest rate from 0% to -0.1%, the lowest figure in the country’s history.

In a statement, it said that the reason for the move was continuing low inflation.

‘The recovery in the world as a whole is expected to continue in the coming years, although it is slow. Since December, however, the risks of weaker growth abroad have increased. Oil prices have fallen, which is positive for global growth, but it will also lead to low global inflation,’ the bank said.

It is the first time that there has been a negative interest rate in Sweden.

The Riksbank hopes that by lowering the interest rate, this will help boost inflation and increase the country’s money supply. By allowing companies to borrow money very cheaply it is hoped that this will lead to increased production and higher inflation, while further reducing unemployment in Sweden, which currently stands at 7.8%.

It previously lowered rates from 0.25% to 0% in October 2014, stating that while the Swedish economy was ‘relatively strong’ and economic activity was continuing to improve, inflation was not happening quickly enough.