Sweden Cuts Key Rate Aggressively To Support Economy

RTTNews | 10h 55phút trước
Sweden Cuts Key Rate Aggressively To Support Economy

(RTTNews) - Sweden's central bank lowered its benchmark rate aggressively in order to support economic activity, and hinted at more rate cuts soon.

The Executive Board of Riksbank decided to slash the policy rate by 50 basis points to 2.75 percent. Markets had anticipated a quarter-point reduction.

To further support economic activity, the policy rate needs to be reduced somewhat faster than was assessed in September, the board observed.

"If the outlook for inflation and economic activity remains unchanged, the policy rate may be cut again at the next monetary policy meeting in December and during the first half of 2025," the bank said.

The bank also decided to maintain the government bond portfolio of SEK 20 billion. The decision means that the ongoing sales of nominal government bonds are expected to be concluded at the end of 2025.

"Economic developments are difficult to assess at present, especially those abroad and not least following the US election," the bank said.

"There are risks linked to the geopolitical tensions, the economic policy abroad, the krona exchange rate and economic activity in Sweden that can affect the outlook for economic activity and inflation and lead to a different monetary policy stance," the bank added.

Capital Economics' economist Adrian Prettejohn said despite a pick-up in consumption over the past few months, and an expectation for strong growth next year, policymakers want to see more concrete evidence of a sustainable economic recovery before they stop cutting rates.

Data released earlier in the day showed that consumer price inflation held steady at 1.6 percent in October. But CPIF inflation rose to 1.5 percent from 1.1 percent in September.

read more
Sweden Central Bank Cuts Interest Rate; Signals More Easing

Sweden Central Bank Cuts Interest Rate; Signals More Easing

Sweden's central bank reduced its benchmark rate by a quarter point on Wednesday and hinted at two more cuts this year as policymakers focus more on economic activity. The executive board reduced the policy rate by 25 basis points to 3.25 percent. This was the third reduction this year. The bank said the policy rate may also be cut at the two remaining policy meetings this year.
RTTNews | 43 ngày trước
Riksbank Cuts Policy Rate By 25 Bps, Signals More Reductions Ahead

Riksbank Cuts Policy Rate By 25 Bps, Signals More Reductions Ahead

Sweden's central bank lowered its key policy rate by a quarter-point as inflation continued to ease amid weakening growth prospects, and signaled as much as three more interest reductions this year. The Executive Board of Riksbank decided to cut the policy rate by 25 basis points to 3.50 percent. Previously, the bank had lowered its policy rate in May, which was the first cut since February 2016.
RTTNews | 79 ngày trước
Sweden Central Bank Signals 2-3 Rate Cuts This Year

Sweden Central Bank Signals 2-3 Rate Cuts This Year

Sweden's central bank maintained its benchmark rate unchanged on Thursday and signalled that the rate will be cut two or three times this year. The Executive Board of Riksbank decided to leave the policy rate unchanged at 3.75 percent as new information indicates that inflationary pressures are largely as expected.
RTTNews | 133 ngày trước
Sweden Central Bank Hints At Two More Rate Cuts This Year

Sweden Central Bank Hints At Two More Rate Cuts This Year

Sweden's central bank lowered its policy rate for the first time in eight years and signaled another two more rate reductions during the second half of the year as inflation approaches the target of around 2 percent amid the weak economic activity. The executive board of the Riksbank, led by Governor Erik Thedeen, decided to lower the policy rate by 25 basis points to 3.75 percent.
RTTNews | 183 ngày trước
Sweden Central Bank Likely To Start Cutting Rates In May

Sweden Central Bank Likely To Start Cutting Rates In May

Sweden's central bank indicated that it will cut the interest rate in May or June as the economy is expected to remain mired in recession, provided the inflation prospects remain favorable. The Executive Board of Riksbank decided to hold the policy rate at 4.00 percent on Wednesday, as expected. It is likely that the policy rate can be cut in May or June if inflation prospects remain favorable.
RTTNews | 225 ngày trước
Riksbank Says Rate Cut Possibility In H1 Cannot Be Ruled Out

Riksbank Says Rate Cut Possibility In H1 Cannot Be Ruled Out

Sweden's central bank on Thursday left its key interest rate unchanged for a second straight session, as expected, and suggested that a rate cut would be possible in the first half of the year. The Executive Board of the Sveriges Riksbank, led by Governor Erik Thedeen, left the key policy rate steady at 4.00 percent.
RTTNews | 280 ngày trước
Riksbank Pauses Rate Hikes Unexpectedly

Riksbank Pauses Rate Hikes Unexpectedly

Sweden's central bank unexpectedly paused its monetary policy tightening but expressed willingness to raise the interest rate further if the inflation outlook deteriorate. The executive board of Riksbank decided to leave the policy rate unchanged at 4.00 percent, confounding expectations for an increase of 25 basis points.
RTTNews | 350 ngày trước
Sweden's Riksbank Raises Rate As Expected; Signals Additional Hike

Sweden's Riksbank Raises Rate As Expected; Signals Additional Hike

The Swedish central bank raised its key policy rate by a quarter point and hinted at further tightening as inflationary pressures remain too high amid unjustifiably weaker currency. The Executive Board of Riksbank, led by Governor Erik Thedeen, decided to raise the policy rate by 0.25 percentage points to 4.00 percent.
RTTNews | 413 ngày trước