Investing.com — The Swedish krona rose slightly following a decision by the Riksbank, Sweden’s central bank, to cut its key interest rate by 25 basis points to 2.5%. This move was anticipated, but the Riksbank also showed a cautious attitude towards future policy easing.
The bank said interest rates have been cut rapidly and monetary policy is gradually affecting the economy, which warrants a “more cautious approach” going forward.
The Riksbank will closely monitor the need for future cuts, taking into account the effects of previous cuts and forecasts for inflation and economic growth. The bank is predicted to implement another interest rate cut in the first half of 2025.
As a result of this decision, interest rates fell 0.2% to 11.5002, compared to 11.5098 before the announcement.
Meanwhile, the Norwegian krone remained stable as Norges Bank prepared to make its policy decision. An interest rate cut could be on the horizon in the first quarter, although this is becoming increasingly strict. The price remained stable and traded flat at 11.7938.
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