Sweden reduces interest rates again

Sweden's central bank cut its key repo rate on Thursday for the second time in three weeks, saying it expected inflation to fall below its two percent inflation target as industrial activity deteriorated.

The 25 basis point cut to 3.75 percent, which surprised some in the Swedish market, followed a 25 point reduction on November 14, the first since September 2001.

Since then, the central bank has indicated that another cut in interest rates was on the cards, but a majority of economists polled

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