Investing.com – The Swedish krona has seen a modest rise following a decision by the Riksbank, Sweden's central bank, to cut its key interest rate by 25 basis points to 2.5%. This move was expected, but the Riksbank also indicated a cautious view of future policy easing.
The bank said rates were cut quickly and that monetary policy is gradually affecting the economy, justifying a “more uncertain approach” going forward.
The Riksbank will carefully examine the need for future cuts, considering the impact of previous cuts and the prognosis for inflation and economic growth. The bank is expected to implement another rate cut in the first half of 2025.
As a result of this decision, the stock fell 0.2% to 11.5002, from 11.5098 before the release.
Meanwhile, the Norwegian krone remained stable as Norges Bank prepared to make its policy decision. A rate cut could be on the horizon in the first quarter, although this is getting tighter. The flat remained stable, trading at 11.7938.
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