Riksbank cuts rates on falling inflation, leaning less against the wind


The Swedish central bank has cut interest rates for the first time in 12 months to counter low inflation and prop up an economy that according to analysts recently fell into recession for the first time in five years.

The Riksbank cut the repo rate by 25 basis points to 0.75% in a bid to bring "unexpectedly low" inflation back towards its 2% target. The bank also slashed interest rate forecasts, noting "slow increases" are not expected until 2015.

"Without a more expansionary monetary policy, th

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