Published 25 September 2024 at 13.28
Economy. The Riksbank's executive board has decided to lower the key interest rate by 0.25 percentage points to 3.25 percent, the authority writes in a press release.
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“If the inflation and economic outlook holds, the interest rate can also be lowered at the two remaining monetary policy meetings this year. A reduction of 0.5 percentage points at one of these meetings may be relevant,” writes the Riksbank.
The forecast indicates another or two interest rate cuts in the first half of 2025.
The policy rate is thus expected to be lowered at a clearly faster rate than previously communicated, which contributes to an expected rally in the housing market and inflation close to the target.
“Since last spring, there has been a clear shift in the risk picture for inflation and economic prospects. The risk of inflation becoming too high has gradually decreased. At the same time, the recovery appears to be somewhat slower than expected,” writes the Riksbank's executive board.