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Swedish Central Bank lowered the rate by 50 bps at once for the first time in 10 years


November, 07 2024
watermark Economic news

The Central Bank of Sweden (Riksbank) has cut its key interest rate by 50 basis points, to 2.75% per annum from 3.25%, for the first time in a decade. This move did not surprise market participants and was part of the response to slowing inflation and a weakening economy. Since May 2024, the bank has already lowered the rate four times.


Riksbank also announced that it is considering further rate cuts at its last meeting this year on December 19, if inflation remains under control, and is ready to continue easing policy in the first half of 2025. The Bank noted that strengthening economic activity is critical for stabilizing inflation at the target 2% level.


In addition, Riksbank will continue to sell off government bonds accumulated during the pandemic and the period of low inflation, with the aim of reducing its assets from 170 billion to 20 billion kronor by the end of 2025.


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