The Riksbank, Sweden's central bank, cut its key interest rate by 25 basis points for the first time since 2016, to 3.75% per annum. This decision coincided with the forecasts of experts. After the meeting, the Riksbank noted that inflation in Sweden is approaching the target level, and economic activity remains weak. The bank also stressed the possibility of an additional rate cut twice in the second half of 2024, if the current forecast for inflation is confirmed. At the same time, the regulator warned that inflation could increase again due to external factors, including geopolitical tensions. To date, inflation in Sweden slowed to 4.1% YoY in March from 4.5% a month earlier, reaching the lowest level since January 2022. The Riksbank has become the second central bank in developed countries to begin easing monetary policy after a long tightening cycle. In March, the Swiss Central Bank also cut its key rate by 25 basis points to 1.5%.
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