MNI BRIEF: Riksbank Cuts 25bps; No Dissents Recorded
MNI (STOCKHOLM) - The RIksbank cut its key interest rate by 25 basis points at its January meeting, taking it down to 2.25% and it gave no clear indication that it was anticipating any further cuts.
In December the Executive Board signalled a rate cut during the first half of this year and in its January statement it said that as the risk of inflation becoming too high was limited and economic activity was weak the first meeting of 2025 was the time to cut. (see RIKSBANK WATCH: 25BP Jan Cut Largely Priced In, Split LIkely )
In its policy statement the board said "the forecast for the policy rate made in December essentially holds," which suggests that the January cut may be the last in the cycle, although it said it stood ready to move policy if things changed. There were no dissents recorded in the policy statement or policy update, pointing to a unanimous vote despite some board members having previously made the case for a "wait and see" approach.