winzir Sweden central bank makes biggest rate cut since 2014
FILE / STOCK
Stockholm, Sweden — Sweden’s central bank made its biggest interest rate cut since 2014 on Thursday and signaled more reductions were forthcoming to kickstart the Nordic country’s economy.
The Riksbank lowered its policy rate by 0.5 percentage points — twice the usual size of a cut — to 2.75 percent.
Article continues after this advertisementIt was the central bank’s fourth rate cut this year as consumer prices have cooled.
FEATURED STORIES BUSINESS Weak peso might delay BSP easing BUSINESS PH, Saudi Arabia see power tie-up materializing in three months BUSINESS PH leads Asean in vehicle production growth in September“The Riksbank has gradually eased monetary policy over the course of the year, as inflation has declined and economic activity has remained weak,” it said in a statement.
Swedish inflation fell to 1.6 percent year-on-year in September, down from 1.9 percent in July.
Article continues after this advertisementREAD: Sweden innovates to achieve smoke-free status faster
Article continues after this advertisementAccording to preliminary figures from Statistics Sweden, inflation remained at 1.6 percent in October.
Article continues after this advertisementThe inflation measure used by the Riksbank to guide monetary policy, CPIF — which is adjusted for interest rates — rose to 1.5 percent year-on-year in October, according to Statistics Sweden, still below the central bank’s two-percent target.
At the same time, preliminary figures showed that Sweden’s GDP contracted by 0.1 percent in the third quarter.
Article continues after this advertisement“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 central bank said, reiterating the position already communicated in September.
The Riksbank made its first rate cut in eight years in May.
It left it unchanged a month later, but has since communicated an accelerated easing of its monetary policy.
After a series of rate hikes aimed at reining in inflation, Sweden’s interest rate had been held at four percent since September 2023, its highest level since 2008.
Thursday’s cut was widely anticipated by analysts.
“Clearly, the Riksbank continues to prioritize supporting the weak real economy,” Swedbank economists said in a comment.
Subscribe to our daily newsletter
In neighboring Norwaywinzir, the central bank kept its interest rate unchanged at 4.5 percent, a 16-year high, and signaled that it would likely not cut it this year in efforts to bring inflation under control.
READ NEXT Seaports mushroom amid cruise ship influx Nissan announces 9,000 job cuts, slashes sales forecast EDITORS' PICK Liam Payne’s body flown home to Britain F&B briefs: New smash burgers and cocktails, holiday food trays to try, and more The politics we’re stuck with – the diversity of Trump Trump’s decisive victory in a deeply divided nation Australia to ban children under 16 from social media – prime minister ‘John Wick or Professor Snape?’: Internet users puzzled by Mark Zuckerberg’s Halloween costume MOST READ 40 more aspirants file COCs, CANs for BARMM polls as deadline nears LTO names driver, owner of SUV with No. ‘7’ plate Villanueva puzzled by national attention on SUV busway violation issue Ong seeks friend’s company at women’s jail due to anxiety, mental health Follow @FMangosingINQ on Twitter --> View comments