Connect with us

Hi, what are you looking for?

Alive Business PlanAlive Business Plan

Investing

Swedish central bank trims rates by 50 basis points, sees more cuts ahead

STOCKHOLM (Reuters) -Sweden’s central bank cut its key interest rate to 2.75% from 3.25% on Thursday, as expected, and said that if the economic and inflation outlooks remain the same it may also cut the rate in December and in the first half of 2025.

The pace of inflation – which peaked at over 10% in late 2022 – has dipped well below the central bank’s 2% target, while the Swedish economy has stalled and is showing little sign of recovery in the short term.

“It is important in itself that economic activity strengthens, but it is also a necessary condition for inflation to stabilise close to the target,” the Riksbank said in a statement.

Donald Trump’s victory in the U.S. presidential election, however, has raised uncertainty over the global economic outlook, with questions around how his policies will affect international trade, inflation and growth, the fight against climate change and support for Ukraine in its war with Russia.

“There is also a risk of a weaker crown,” said Lars Kristian Feste, head of Fixed Income at Lannebo Funds.

Many economists expect higher inflation and lower growth – a difficult combination for central banks to handle.

Sweden’s central bank has now cut the policy rate four times this year, starting in May.

Analysts in a Reuters poll had expected a half percentage point cut on Thursday.

Other central banks are set to announce their policy decisions later on Thursday, starting with Norway at 0900 GMT. The Bank of England will announce its rate decision at 1200 GMT and the U.S. Federal Reserve at 1900 GMT.

Norway’s central bank is expected to keep borrowing costs on hold, with a first rate cut coming early next year, while the BOE and the Fed are each expected to deliver quarter point cuts.

This post appeared first on investing.com
Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    You May Also Like

    Latest News

    The Gateway Pundit, a far-right website, published a note from its editor on Saturday acknowledging that two election workers in Georgia did not engage...

    Latest News

    New majorities in Congress, particularly when the incoming party has a new leader, offer the rare chance for the institution to take a breath...

    Investing

    JAKARTA (Reuters) -Indonesia has asked Alphabet (NASDAQ:GOOGL)’s Google and Apple (NASDAQ:AAPL) to block Chinese fast fashion e-commerce firm Temu in their application stores in...

    Latest News

    Sister Stephanie Schmidt had a hunch about what her fellow nuns would discuss over dinner at their Erie, Pennsylvania, monastery on Wednesday night. The...



    Disclaimer: alivebusinessplan.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 alivebusinessplan.com