HELSINKI, Nov. 7 (Xinhua) -- The Swedish central bank reduced its policy rate by 0.5 percentage points to 2.75 percent on Thursday, marking the fourth cut this year.
The new rate will be effective on Nov. 13, the bank announced in a press release.
The bank suggested that additional rate cuts could be possible in December, depending on Sweden's inflation outlook, though it noted ongoing uncertainty. The central bank's inflation target remains at 2 percent.
The bank highlighted the challenges in assessing economic conditions, particularly with international factors such as the U.S. election. "Risks related to geopolitical tensions, foreign economic policies, krona's exchange rate, and domestic economic activity could affect the economic outlook and inflation, potentially leading to a shift in monetary policy," it said.
The Bank of England (BoE) also reduced interest rates for the second time this year on Thursday, setting the rate at 4.75 percent, a 0.25-percentage-point decrease from the previous 5 percent. This adjustment brings rates to their lowest level in over a year, last seen below 5 percent in June 2023.
Norway's central bank, Norges Bank, has opted to keep its policy rate at 4.5 percent, a level it has maintained since December 2023. The decision aligns with the bank's goal of curbing inflation while fostering economic stability and supporting employment, according to central bank governor Ida Wolden Bache.
In a press release, Bache said the primary objective of the policy rate is to achieve low and stable inflation, targeting a rate close to 2 percent over time. The 4.5-percent policy rate has been effective in cooling the Norwegian economy and alleviating inflationary pressures, she said, adding that Norges Bank intends to maintain this rate through the end of the year, assuming economic conditions remain stable.
