The Riksbank, Sweden's central bank, reduced its main interest rate, according to a statement from the bank.The repo rate was lowered by 25 basis points to 1%, in a move generally expected by economists.
In its statement, the Riksbank said the cut was made due to weak domestic household consumption, rising unemployment, and a lack of inflationary pressures. In terms of the latter, the country is still some distance away from the bank's upper target of 2%.
The bank also said in its statement that the economic sluggishness of the euro area is having an impact on Sweden.�The repo rate is expected to remain around the newest low level for the coming year.
The rate cut is the third enacted by the Riksbank this year.
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