Sweden's central bank cuts repo rate to 0.75%
2013-12-17 11:19:14
Sweden's central bank on Tuesday decided to lower the key interest rate by a quarter-point, saying that inflation has been lower than expected.
To contribute to inflation rising towards 2 percent, the Executive Board of the Riksbank has decided to cut the repo rate by 25 basis points to 0.75 percent, and to make a downward adjustment in the repo-rate path for the entire forecast period, the central bank said in a statement.
Inflation has been unexpectedly low and, despite the recovery, inflationary pressures over the coming year are expected to be much lower than in the most recent forecast in October, the Board said.
Under the new repo rate path, slow increases in the rate are not expected to begin until the start of 2015.