Central Banks
Riksbank Kicks Off Easing With First Rate Cut Since 2016
- Policymakers are acting a month before the ECB may move too
- Sweden’s krona weakens despite pledges of gradual easing
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The Riksbank cut its benchmark interest rate for the first time in eight years, acting before the neighboring euro zone in a bid to offer respite to Sweden’s recession-stricken economy.
The central bank in Stockholm lowered its policy rate by a quarter point to 3.75% and said it could be reduced twice more in the second half of the year, according to a statement on Wednesday.