Policy rate cut by 0.5 percentage points to 2.75 per cent
Press release To provide further support to the economy and help inflation stabilise at the target, the Executive Board has decided to cut the policy rate by 0.5 percentage points to 2.75 per cent. If the outlook for economic activity and inflation remains the same, the policy rate may also be cut in December and during the first half of 2025, in line with what was communicated in September.
The Riksbank has gradually eased monetary policy over the course of the year, as inflation has declined and economic activity has remained weak. Despite an expectation among economic agents of better times ahead, there are still few clear signs of a recovery. To further support economic activity, the policy rate needs to be cut somewhat faster than was assessed in September. It is important in itself that economic activity strengthens, but it is also a necessary condition for inflation to stabilise close to the target.
The Executive Board has therefore decided to cut the policy rate by 0.5 percentage points to 2.75 per cent. If the outlook for inflation and economic activity remains unchanged, the policy rate may be cut again at the next monetary policy meeting in December and during the first half of 2025, in line with what was communicated in September.
Economic developments are difficult to assess at present, especially those abroad and not least following the US election. There are risks linked to the geopolitical tensions, the economic policy abroad, the krona exchange rate and economic activity in Sweden that can affect the outlook for economic activity and inflation and lead to a different monetary policy stance.
Press conference in Falun
The decision on the policy rate will apply with effect from 13 November. The minutes from the Executive Board’s monetary policy meeting will be published on 13 November. A press conference with Governor Erik Thedéen and Åsa Olli Segendorf, Head of the Monetary Policy Department, will be held today at 10.00 at Magasinet, Tullkammaregatan 12 in Falun. Press cards or the equivalent are required to participate. The press conference will be broadcast live on riksbank.se.
About the Monetary Policy Update
A Monetary Policy Update is published in connection with the policy rate decision, containing the Executive Board's assessment of how new information affects economic prospects and monetary policy. The update does not contain any new forecasts. The next Monetary Policy Report containing forecasts will be published on 19 December.