Sweden’s Riksbank cut borrowing costs by a quarter point and raised the possibility of a bigger move in coming months in its bid to spur a listless economy.

Borrowing costs in Sweden are being lowered faster than previously predicted as inflation falls below target. View on euronews

The latest decision from Sweden’s Riksbank should leave nobody in any doubt that it is currently the most dovish central bank within the developed markets. The Riksbank has cut rates by 25 basis points for the third time this year, but more importantly, is telling us that the job is nowhere near finished.

SWEDEN’S Riksbank cut borrowing costs by a quarter point and raised the possibility of a bigger move in coming months in its bid to spur a listless economy. Read more at The Business Times.

The Riksbank delivered an expected 25-basis-point cut in September, taking its policy rate to 3.25%, but pointed to what it called a clear shift in the balance of risks and said it would accelerate the pace of easing if things evolved as it now expected.

Since May this year, Sweden's interest rate has dropped 0.75 percentage points, from 4 to 3.25 percent.

The Riksbank cut its key interest rate for the third time this year and said borrowing costs will likely be lowered again soon as a faltering economy threatens to push inflation further below its target.

Sweden’s central bank trimmed interest rates on Wednesday, in line with expectations, and said it expected to cut further in the coming months.

Sweden's central bank is expected to cut its policy rate by a quarter percentage point to 3.25% on Wednesday and then twice more before the end of the year as inflation pressures continue to ease, a poll of analysts by Reuters showed on Monday.