Riksbank cuts its Rate by 25bps as expected to 3.50% (prev. 3.75%); Policy rate can be cut two or three more times this year - somewhat faster than the Board expected in June

INFLATION

• Inflation is close to the target and expected to remain so even in the slightly longer term. However, the outlook for inflation is uncertain.

GDP

• GDP growth is weak and developments on the labour market are subdued, but unemployment is not expected to rise much further.

RATE

• Executive Board assesses that the policy rate can be cut somewhat faster than was assessed in June.
• If the inflation outlook remains the same, the policy rate can be cut two or three more times this year.

RISKS

• There are risks linked, for instance, to the geopolitical situation, economic activity in Sweden and abroad, and the krona exchange rate that can lead to a different outcome for inflation and thereby a different monetary policy.