Swedish Central Bank Rate Cut and More to Come – Currency Thoughts
Swedish Central Bank Rate Cut and More to Come
August 20, 2024
The Executive Board of the Swedish Riksbank cut their policy interest rate by 25 basis points for the second time since March and released a statement that points to somewhat greater easing over the rest of 2024. Officials proclaim in it that “the policy rate can be cut somewhat faster than was assessed in June. If the inflation outlook remains the same, the policy rate can be cut two or three more times this year.” The rate had previously been lifted by four percentage points between April 2022 and September 2023 from 0% to 4% but now becomes 3.5%. The statement observes that inflation has lately dropped more quickly than anticipated against a backdrop of slowed demand-side pressure and will soon converge around the 2% target.
Copyright 2024, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Sweden’s second central bank rate cut this cycle
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