Sweden’s easing cycle, which delivered eight rate cuts since last spring, now appears to have ended. Minutes from the Riksbank’s latest monetary policy meeting, released on Monday, showed that last week’s move is likely the final cut in the current cycle.
On September 23, the Riksbank lowered its key policy rate by 25 basis points to 1.75% from 2.00%. Policymakers argued that underlying inflation is moving toward the 2.0% target — and possibly below it — creating room to support a sluggish economy with one last rate reduction.
Riksbank Governor Erik Thedéen explained that while risks remain, the case for easing outweighed counterarguments. He added that, in his assessment, this would probably be the last interest rate cut in the current cycle.
