Sweden’s central bank has cut interest rates and signalled it could make three more reductions this year as the Scandinavian country tries to reinvigorate its weak economy.
The Riksbank reduced its main policy rate by 25 basis points to 3.5 per cent on Tuesday, and said it could cut up to three more times this year — faster than its assessment when it started easing monetary policy in May — if inflation remained under control.
It said a weak growth outlook in Sweden and abroad justified the cut as economists wait to see whether the European Central Bank and US Federal Reserve will lower borrowing costs at their next meetings in September.
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