Riksbank cuts interest rate to 1.50%
17 February 2012
Sweden's central bank, the Riksbank, said Thursday it cut its repo rate by 25 basis points to 1.5% because the outlook for the Swedish economy has weakened.
The decision on the rate cut was split, with Deputy Governors Karolina Ekholm and Lars Svensson arguing for rate cut to 1.25%.
"Sluggish growth in the euro area has subdued the demand for Swedish exports, which slowed down significantly in late 2011. The weaker economic outlook has led the households to begin saving more and to postpone their consumption, while the companies are postponing their investment," the Riksbank explained.