Interest rate cut, Interest rates | The Swedish Riksbank lowers the interest rate

This is reported by the Swedish Riksbank.

The interest rate cut is the first in over eight years, after ten interest rate increases in a row.

There may be two further interest rate cuts during the year, reports the Riksbank. This assumes that the inflation trend continues at the same pace. But even if Sweden is approaching the inflation target, there is still uncertainty related to this, writes the Riksbanken.

The person who can contribute to inflation rising again is linked to the American economy, geopolitical unrest and the exchange rate of the Swedish krona, says a press release from the Riksbank.

– Approaching interest rate cuts in Norway

– That is wonderful news! It shows that after a long time with inflation and interest rate jumps, there is finally one country around us that is lowering interest rates. For Sweden, it is positive that they have control over inflation, but at the same time the rising unemployment is worrying, says chief economist Kyrre M. Knudsen at Sparebank1 SR-Bank to Nettavisen.

And that gives hope for interest rate cuts in Norway as well.

– This gives hope here at home as well. This means that Norwegian people and companies are one step closer to interest rate cuts in Norway. The most important thing in the short term, however, is the impact of the krone and the krone exchange rate, says Knudsen.

– Today, the Swedish krona will probably weaken – and thus drag down the Norwegian krona as well, as we are neighboring countries that are often seen as something of the same.