In the News

Riksbank Kicks Off Easing With First Rate Cut Since 2016

Bloomberg, May 8

The Riksbank cut its benchmark interest rate for the first time in eight years, acting before the neighboring euro zone in a bid to offer respite to Sweden’s recession-stricken economy. The central bank in Stockholm lowered its policy rate by a quarter point to 3.75% and said it could be reduced twice more in the second half of the year, according to a statement on Wednesday. The move makes the Swedish central bank the second among advanced-world peers after the Swiss National Bank to embark on post-pandemic easing and shows how approaches are differing after the US Federal Reserve’s plans to cut rates were derailed by stubborn inflation pressures and a thriving economy.