Swedish c.bank lowers key interest rate, sees more cuts this year
Riksbank cuts policy rate as expected to 3.50% from 3.75%
Says inflation risks have diminished, could speed up rate cuts
Adds additional analyst, central bank comment, currency reaction
By Simon Johnson
STOCKHOLM, Aug 20 (Reuters) -Sweden's central bank lowered its key interest rate to 3.50% from 3.75% on Tuesday, as expected, and said it could speed up policy easing if price pressures do not pick up, holding out the possibility of up to three more cuts before year end.
After peaking at over 10% in 2022, the pace of inflation in Sweden has dropped rapidly and the central bank lowered its key rate for the first time in around eight years in May.
Since then, inflation has continued to ease, undershooting the central bank's 2% target for two months in a row. The economy slowed in the second quarter.
"If the inflation outlook remains the same, the policy rate can be cut two or three more times this year, which is somewhat faster than the Executive Board assessed in June," the central bank said in a statement.
Analysts had unanimously predicted a cut of a quarter percentage point.
With inflation tame, the economy sluggish and rate cuts likely from both the U.S. Federal Reserve and the European Central Bank in the coming months, analysts said there was little reason for the Riksbank to hold off from normalising policy. 0#FF:
"We change our forecast and now expect the Riksbank to cut rates at every remaining meeting this year," Swedbank, which had previously forecast two more cuts, said in a note.
The Swedish crown weakened immediately after the rate announcement but recovered to stand 0.3% higher against the euro at 0830 GMT. EURSEK=
The Riksbank left its key rate unchanged at 3.75% at its previous meeting, in June, but said then that it could make up to three more cuts before the end of the year.
The inflation picture has since brightened while the economic outlook is bleaker.
"The risk of inflation becoming too high again has declined significantly," the Riksbank said in its statement.
"Moreover, new information since the Monetary Policy Report in June indicates that the growth outlook in Sweden and abroad is somewhat weaker than in the most recently published forecast."
The Swedish central bank has three more meetings this year - in September, November and December.
Swedish rates and inflation: http://tmsnrt.rs/1qEN4Rz
Swedish economy: http://tmsnrt.rs/2bylYpf
Reporting by Simon Johnson, Niklas Pollard, Terje Solsvik and Johan Ahlander; editing by Niklas Pollard and Christina Fincher
Activos relacionados
Últimas noticias
Descargo de responsabilidades: Cada una de las entidades de XM Group proporciona un servicio de solo ejecución y acceso a nuestra plataforma de trading online, permitiendo a una persona ver o usar el contenido disponible en o a través del sitio web, sin intención de cambiarlo ni ampliarlo. Dicho acceso y uso están sujetos en todo momento a: (i) Términos y Condiciones; (ii) Advertencias de riesgo; y (iii) Descargo completo de responsabilidades. Por lo tanto, dicho contenido se proporciona exclusivamente como información general. En particular, por favor tenga en cuenta que, los contenidos de nuestra plataforma de trading online no son ni solicitud ni una oferta para entrar a realizar transacciones en los mercados financieros. Operar en cualquier mercado financiero implica un nivel de riesgo significativo para su capital.
Todo el material publicado en nuestra plataforma de trading online tiene únicamente fines educativos/informativos y no contiene –y no debe considerarse que contenga– asesoramiento ni recomendaciones financieras, tributarias o de inversión, ni un registro de nuestros precios de trading, ni una oferta ni solicitud de transacción con instrumentos financieros ni promociones financieras no solicitadas.
Cualquier contenido de terceros, así como el contenido preparado por XM, como por ejemplo opiniones, noticias, investigaciones, análisis, precios, otras informaciones o enlaces a sitios de terceros que figuran en este sitio web se proporcionan “tal cual”, como comentarios generales del mercado y no constituyen un asesoramiento en materia de inversión. En la medida en que cualquier contenido se interprete como investigación de inversión, usted debe tener en cuenta y aceptar que dicho contenido no fue concebido ni elaborado de acuerdo con los requisitos legales diseñados para promover la independencia en materia de investigación de inversiones y, por tanto, se considera como una comunicación comercial en virtud de las leyes y regulaciones pertinentes. Por favor, asegúrese de haber leído y comprendido nuestro Aviso sobre investigación de inversión no independiente y advertencia de riesgo en relación con la información anterior, al que se puede acceder aquí.
