Sweden lowers interest rate for 3rd time in 2024, signaling new cuts

By Gokhan Ergocun

ISTANBUL (AA) — Sweden's Central Bank cut its policy rate for the third time in 2024, lowering it by 25 basis points to 3.25% on Wednesday.

"If the outlook for inflation and economic activity remains unchanged, the policy rate may also be cut at the two remaining monetary policy meetings this year," the bank said in a press release.

"It also indicates that one or two further cuts may be made during the first half of 2025," it added.

The bank has lowered the rate gradually from 4% over its last four monetary policy meetings.

Beginning in April 2022, it increased the rate from 0% to that level in September 2023, then kept it stable until March this year.

The bank noted that inflationary pressures had decreased during 2024, compatible with an inflation rate of around 2%.

Its inflation expectation was at 2.7% for 2024, 0.4% for 2025, 1.7% for 2025 and 2% for 2027. It was at 8.5% last year.