Swedish Interest Rate Cut
January 29, 2025
The Swedish Riksbank policy rate has been reduced by 25 basis points to 2.25%. The new level is its lowest since November 2022 follows five rates since last May. The rate had peaked at 4.0% from September 2023 until May 2024. A statement explaining today’s action defends the need for caution in extending rate reductions in spite of inflation aligned with the 2% target and weak growth as attested by the aforementioned GDP data released today. “There is particular uncertainty regarding developments abroad, for instance with regard to economic policy in the United States and Europe and the geopolitical tensions. There are also risks linked to the recovery in the Swedish economy and the krona exchange rate.” Nothing since the prior meeting has changed the view that most likely there will be no more than one more slight cut before midyear.
Copyright 2025, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Swedish Riksbank
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