Currencies: The Bank of Sweden slashes interest rates. Crown becoming weaker against the euro – Virtual Poland

The Central Bank of Sweden abstained from further interest rate cuts to below zero. He hopes to stimulate the economy to faster growth.

Thursday’s decision of the Bank of Sweden was expected by analysts, although the scale it could no longer be surprising. Bank decided in fact to cut the interest rate from minus 0.35 percent to minus 0.5 percent. Sweden therefore remains at the forefront of countries with the lowest interest rates in the world, alongside, among others, Switzerland and Japan.

In a press Riksbank says that its monetary policy has contributed so far to strengthen the economy and reduce unemployment in Sweden. The problem remains, however, very low inflation.

interest rate cuts in Sweden also contributed to a significant weakening of the Swedish currency. After Thursday’s decision for one euro longer have to pay about 9.60 crowns.

The bank said the latest economic forecasts for Sweden. The Communication shows that this year Sweden’s GDP will grow by 3.5 percent, but in the future growth may slow to 2.8 percent. Unemployment will remain around 6.7 percent, and inflation will return to levels above 2 percent.