Riksbank Cuts Key Rate and Signals Further Easing Is Unlikely
- Dr. Bruce Moynihan
- Sep 25, 2025
- 5 min read
Sweden’s central bank has made a critical policy move by reducing its benchmark interest rate to 1.75%. The decision reflects a balancing act between supporting economic activity and avoiding long-term inflationary risks. While the cut offers some relief to households and businesses, Riksbank officials have signaled that this may be the final easing of the current monetary cycle. The announcement carries significant weight for Sweden’s economic outlook and sends a message of cautious optimism to global markets.
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