The Swedish Krona weakened against the Euro on Wednesday, after Riksbank lowered its benchmark policy rate by 25 basis points to 3.25% at its September meeting, in line with market consensus.
That followed another such move in August.
Riksbank also flagged more rate cuts at the two remaining monetary policy meetings this year, in case the inflation outlook and economic activity remain without change, with a potential 50 bps cut at one of these meetings.
“Moreover, the forecast indicates one or two further rate cuts during the first half of 2025,” the central bank said.
Therefore, the policy rate is expected to be reduced at a faster pace than previously communicated due to stronger economic activity and an inflation rate near the central bank’s target.
The Swedish Krona was 0.10% weaker on the day against the Euro, with the EUR/SEK currency pair last trading at 11.2953.
The exotic Forex pair advanced to 11.3266 immediately after the policy announcement.
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