The Riksbank will lower the key interest rate by 0.25 percentage points, announced on Thursday.
At the same time, they are flagging for another possible interest rate cut in 2025.
The Riksbank lowers the key interest rate by 0.25 percentage points, from 2.75 percent to 2.5 percent.
It is the fifth rate cut of the year, and means that the key rate has been lowered by a total of 1.5 percentage points since May.
In a press release, it is written that the policy rate can be lowered once more, in the first half of 2025, if the economic and inflation prospects hold up.
“Despite some signs that the economy is on the way to recovery, it remains weak. That the economy is strengthened is important in itself, but it is also a prerequisite for inflation to stabilize close to the target,” the press release states.
In November, a major interest rate cut was made, and the Riksbank considers that an interest rate cut is appropriate to further support the recovery.
Håkan Regnér, chief economist at Saco, says in a written comment that the single reduction was expected.
“Good, but they could have taken a bigger step down. Because the economy hesitates, households would rather save than waste and the labor market continues to weaken. Add to that extreme global economic and political uncertainty,” he says.
The decision on the key interest rate will be applied from 8 January.