Sweden’s Riksbank moved its interest rates deeper into negative territory with an unexpectedly large cut.

Despite the fact that the country’s economy is booming, the central bank cut its main repo rate by 15 basis points to minus 0.5 percent.

“The upturn in inflation is still not on a firm footing, as is illustrated by the unexpectedly weak outcomes in recent months,” the Riksbank said.

The move intensifies fears that global policymakers are being forced to take more extreme action to tackle low inflation, the FT said.