The Swedish Central Bank (Riksbank) lowered its policy rate by 50 basis points as expected; it announced that if the inflation and economic activity outlook remain unchanged, the policy rate will continue to be lowered in December and in the first half of 2025.

According to the statement made by the Riksbank, the benchmark interest rate was lowered from 3.25% to 2.75%. The market expectation was that the rate would be lowered by 50 basis points.

“If inflation and the economic outlook persist, the policy rate may continue to be lowered at the next monetary policy meeting in December and in the first half of 2025 in line with what was announced in September,” the statement said.

The statement continued as follows:

“Evaluating economic developments is currently difficult, especially in the external world and at least after the US elections. There are risks related to, among other things, geopolitical unrest, economic policy in the external world, the exchange rate of the krona and the Swedish economy, which could affect economic and inflation expectations and lead to a different monetary policy design.”