Sweden cuts interest rates, citing poor economic outlook

Sweden’s central bank has announced a 0.25% cut to its repo rate, which will be 1% from 19 December.

The cut comes as the bank said it sees clear effects on the domestic economy of weaknesses in the eurozone, including weaker consumption coupled with rising unemployment amid low inflation.

A rate cut is necessary to give support to the economy and encourage inflation towards the 2% target, the bank said.

The bank warned that its repo rate could be lowered further, depending on developments further afield, especially considering the ongoing uncertainty in the eurozone.

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