Central Banks
Sweden’s Riksbank Opens Door to May Cut With Rate Kept at 4%
- A reduction in May would mean acting before the ECB and Fed
- Riksbank says risks include its easing plans boosting demand
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The Riksbank laid the groundwork for monetary easing as soon as May, offering Sweden’s recession-stricken economy the prospect of some imminent respite.
While policymakers led by Governor Erik Thedeen kept their benchmark interest rate at 4% as expected, they strengthened signals on a cut within the next quarter and projected a pathway to three possible reductions this year. The krona weakened after the decision.