Riksbank Cuts Rate by 25bps to 3.25% from 3.50%, Signals Further Cuts

Sep 25, 2024, 07:32 AM

Sweden's Riksbank has cut its policy rate by 25 basis points to 3.25%, aligning with market expectations and down from the previous 3.50%. This reduction is part of a broader strategy, with the central bank indicating that further rate cuts may occur at the two remaining monetary policy meetings this year. A more substantial cut of 50 basis points is possible at one of these meetings. Additionally, forecasts suggest one or two further rate cuts during the first half of 2025. The Riksbank has communicated that the policy rate is expected to be reduced at a clearly faster pace than previously anticipated.