Sweden's central bank has cut its key interest rate from 3.50% to 3.25%, in line with expectations and indicated that if the inflation outlook remains favorable, it could accelerate the pace of policy easing in the coming months.
With inflation stabilized and the economy experiencing a slowdown, the Riksbank carefully modified its policy stance earlier this year and has grown more confident in its capacity to accelerate rate cuts to assist struggling businesses and households.
The central bank, having reduced rates three times this year, suggested the possibility of following the U.S. Federal Reserve's lead by implementing a half-percentage point cut at one of its two remaining policy meetings this year.


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