The Sveriges Riksbank announced on Wednesday that its Executive Board decided to lower the policy rate by 25 basis points to 3.25%.
The central bank noted that inflationary pressures have eased significantly over the year and "are now assessed to be compatible with an inflation rate of around 2 per cent." However, The Riksbank said that economic recovery "appears to be proceeding somewhat more slowly than expected."
The bank shared that two more rate cuts can be expected until the end of the year, at the November and December meetings, "if the outlook for inflation and economic activity remains unchanged." It also signaled one or two additional cuts in the first six months of 2025.
