Sweden cuts its key rate by 0.5 percentage points to 2.75%, the largest reduction in over a decade

STOCKHOLM (AP) — Sweden’s central bank has cut its key interest rate by half a percentage point to 2.75% in what was described as the largest reduction in over a decade. It’s the fourth rate cut this year. Riksbanken said Thursday that it would “provide further support to the economy and help inflation stabilize at the target.” Another cut could be made in December, and during the first half of 2025. The central bank said the monetary policy has been gradually eased over the course of the year as inflation has declined, and economic activity has remained weak. In neighboring Norway, the central bank maintained the policy rate unchanged at 4.5% on Thursday.