Financial News: Riksbank Signal Another Rate Cut

Riksbank Signal Another Rate Cut

06/18/2025 - 16:30:00 (RTTNews)

(RTTNews) - Sweden's central bank lowered its policy rate on Wednesday, as expected, and signaled the probability of another reduction this year as inflation is expected to lower than earlier forecast and likely to stabilize around the target.

The Riksbank Executive Board, led by Governor Erik Thedéen, cut the policy rate by 0.25 percentage points to 2 percent. The bank kept the policy rate steady at 2.25 percent in March and May, following a quarter-point reduction in February.

"The forecast for the policy rate entails some probability of another cut this year," the bank said. "The lower interest rate will stabilize inflation at the target and contribute to strengthening economic activity."

The Riksbank observed that the economic recovery is proceeding more slowly than expected and the substantial uncertainty due to trade tariffs and geopolitical tensions, especially the ongoing Middle East conflict, is expected to hamper growth in the near term.

The bank said weaker demand is set to damp inflation going forward than in the most recent forecast.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

New Zealand GDP Expands 0.8% In Q1 (23 min(s), 39 sec(s) ago)
(RTTNews) - New Zealand's gross domestic product expanded by a seasonally adjusted 0.8 percent ...Full Story»

Australia Unemployment Data Due On Thursday (01 hr(s), 37 min(s), 39 sec(s) ago)
(RTTNews) - Australia will on Thursday release May numbers for unemployment, highlighting a light ...Full Story»

Riksbank Signal Another Rate Cut (03 hr(s), 07 min(s), 39 sec(s) ago)
(RTTNews) - Sweden's central bank lowered its policy rate on Wednesday, as expected, and signa ...Full Story»

Fed Leaves Interest Rates Unchanged, Still Signals Two 2025 Rate Cuts (05 hr(s), 03 min(s), 39 sec(s) ago)
(RTTNews) - Despite pressure from U.S. President Donald Trump, the Federal Reserve on Wednesday an ...Full Story»

Treasury Reveals Details Of Two-Year, Five-Year & Seven-Year Note Auctions (08 hr(s), 25 min(s), 39 sec(s) ago)
(RTTNews) - The Treasury Department on Wednesday announced the details of this month's auction ...Full Story»

U.S. Crude Oil Inventories Plunge Much More Than Expected (08 hr(s), 57 min(s), 39 sec(s) ago)
(RTTNews) - A report released by the Energy Information Administration on Wednesday showed a steep ...Full Story»

U.S. Housing Starts Pull Back Sharply In May (09 hr(s), 23 min(s), 39 sec(s) ago)
(RTTNews) - The Commerce Department released a report on Wednesday showing a steep drop by new res ...Full Story»

U.S. Jobless Claims Pull Back Off Eight-Month High (09 hr(s), 26 min(s), 39 sec(s) ago)
(RTTNews) - First-time claims for U.S. unemployment benefits edged modestly lower in the week ende ...Full Story»