Interest rate cut – signals another one

The Riksbank lowers the key interest rate by 0.25 percentage points to 2.00 percent. At the same time, it is flagging a further reduction in the autumn, but according to Riksbank Governor Erik Thedéen, such a scenario is not the most desirable. “Here, as a household, you should not necessarily hope for more interest rate cuts.”

A continued sluggish Swedish economy together with moderate inflationary pressure paved the way for the interest rate cut. The Riksbank Executive Board was unanimous in its decision.

At Wednesday’s press conference, Riksbank Governor Erik Thedéen stated that the economy is losing momentum, that the worst tariff shock appears to be over, and that both wage growth and inflation expectations are in line with the target.