Central Banks
Sweden’s Riksbank Takes First Step Toward Interest Rate Cuts
- Central bank keeps benchmark rate steady at 4.0% as expected
- A cut could be on the cards as soon as the first half of 2024
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The Riksbank held rates steady and said it may lower borrowing costs as soon as in the first half of the year, pivoting from a tightening campaign that tipped the Swedish economy into a recession.
Policymakers led by Governor Erik Thedeen kept the central bank’s benchmark interest rate at 4% on Thursday, as forecast by economists. If price increases keep abating, a cut could be on the cards before the end of June, it said.