Sweden Central Bank Cuts Key Policy Rate to Boost Economic Growth
STOCKHOLM, Sweden (Reuters) - Sweden's central bank, the Riksbank, has lowered its key policy rate by 0.25% to 2.25%, as widely anticipated. This is the fifth consecutive rate cut since last May.
The decision aligns with the Riksbank's aim to stimulate sluggish economic growth. In December, the bank hinted at one more rate cut in the first half of 2023. This move signals the bank's confidence in managing inflation, which reached 10% in late 2022 and has since been brought under control.
Economic growth remains a concern, with the Riksbank expecting a modest recovery this year. However, uncertainty persists, primarily due to global geopolitical tensions and economic policies in the US and Europe.
The Riksbank remains vigilant and is prepared to adjust its stance if necessary. Factors such as the Swedish economic recovery and the exchange rate of the Swedish krona are closely monitored.