Sweden Interest Rate

The Swedish Riksbank cut its key policy rate by 50bps to 2.75% during its November meeting, as widely expected. The central bank has reduced its policy rate four times this year, starting in May, in response to declining inflation and sluggish economic activity. Economic growth has stalled, and inflation has fallen below the bank’s 2% target. Policymakers indicated that if the outlook for economic activity and inflation remains unchanged, further reductions in the policy rate could occur in December and during the first half of 2025, in line with what was communicated in September. However, the bank noted that factors such as geopolitical unrest, economic policy decisions in other countries, the weak krona, and the current state of the Swedish economy could all influence the monetary policy in the coming months.