Press release In order to provide additional support to the economy and contribute to stabilizing inflation at the target, the Executive Board has decided to lower the key interest rate by 0.5 percentage points to 2.75 percent. If economic and inflation prospects hold, the policy rate can also be lowered in December and during the first half of 2025, in line with what was communicated in September.
During the year, the Riksbank has gradually eased monetary policy, as inflation has fallen and the economy has remained weak. Despite an expectation among economic actors of brighter times ahead, there are still few clear signs of a recovery. In order to provide additional support to the economy, the policy rate needs to be lowered a little faster than was assessed in September. Strengthening the economy is important in itself, but also a prerequisite for inflation to be stabilized close to the target.
The Executive Board has therefore decided to lower the key interest rate by 0.5 percentage points to 2.75 percent. If the inflation and economic outlook hold, the policy rate may continue to be lowered at the next monetary policy meeting in December and during the first half of 2025, in line with what was communicated in September.
The economic development is currently difficult to assess, especially in the outside world and not least after the American election. There are risks linked to, among other things, the geopolitical unrest, the economic policy in the outside world, the exchange rate of the krona and the Swedish economy, which can affect the economic and inflation prospects and lead to a different design of the monetary policy.
Press conference in Falun
The decision on the key interest rate applies from 13 November. The minutes from the executive board’s monetary policy meeting will be published on 13 November. A press meeting with Riksbank governor Erik Thedéen and Åsa Olli Segendorf, head of the department for monetary policy, will be held today at 10:00 a.m. at Magasinet, Tullkammaregatan 12 in Falun. To participate, a press ID or equivalent is required. The press conference is broadcast live on riksbank.se.
About Monetary policy update
In connection with the announcement, a Monetary Policy Update is published which contains the Executive Board’s assessment of how new information affects the economic outlook and monetary policy. There are no new forecasts in the update. The next monetary policy report with forecasts will be published on 19 December.
Contact: Press service 08-787 02 00
Updated 2024-11-07
Interest Rates Get a Haircut: Riksbank Takes a Snip at Economic Woes!
Well, well, well! If it isn’t the Riksbank, the ever-dramatic financial institution of Sweden, stepping boldly into the limelight with an announcement that grabbed everyone’s attention—like a magician pulling a rabbit out of a hat, only this time, the rabbit is wearing a little vest that says “0.5%.” Yes, folks, the Executive Board has decided to lower the key interest rate to a tantalizing 2.75 percent! Now, if only my dating life had such a promising curve downward!
The Details: A Financial Soap Opera
Let’s break this down, shall we? Throughout the year, the Riksbank has been as busy as a one-armed juggler, trying to ease monetary policy as inflation fell and the economy wobbled like a toddler on ice skates. And while everyone is expecting brighter skies ahead—think of a charming yet uncoordinated interlude in a Lee Evans comedy—the truth is that solid signs of recovery are as rare as a polite politician these days.
It seems like the Riksbank executive team looked deep into their crystal ball and decided that a quicker cut to the key interest rate was in order. Apparently, saving the economy is not just important; it’s supposed to stabilize inflation too! It’s the classic “two birds with one snazzy stone” scenario! If you’re keeping score, this is a call for action wrapped in economic lunacy that we’ve all come to expect in this rollercoaster we call finance.
Live Updates from Falun: Where Economic Stars Align!
Mark your calendars for the juicy happenings in Falun! On November 13, the decision takes effect, but that’s not all. Hold on to your hats, because the minutes from the Executive Board’s meeting will be dropped on the same day! That’s right; you can get all the insider gossip straight from the horse’s mouth—or in this case, straight from the press conference with the dapper Riksbank governor Erik Thedéen and the sharp Åsa Olli Segendorf, who surely have a few tricks up their sleeves.
And if you are eager to hop on the Riksbank experience, the press conference will be broadcast live on riksbank.se. Just remember to bring your press ID—because this isn’t a free-for-all, folks! […] Spoiler alert: It’s unlikely to feature the excitement of a typical Ricky Gervais stand-up—no awkward silences or excessive eye rolls, just economics!
What Does this Mean for Us, the Ordinary Folk?
Now, let’s address the elephant in the room—what does this all mean for the average Joe and Jane? In simple terms, a lower interest rate should make borrowing cheaper. This could mean lower mortgage payments, cheaper loans, and possibly, just possibly, fewer nights spent counting sheep while staring at an oppressive credit card bill. But, as any comedian will tell you, timing is everything! The economic development is still as bewildered as a deer in headlights, especially with possible geopolitical crises lurking around like bad sequels to already terrible movies.
Ah, indeed, there are risks involved—like geopolitical unrest and currency exchange chaos that could toss the economy’s future around like a salad at a truck stop diner. Bloomberg and beyond, all eyes will be glued to the outside world as we wait for the next curveball. Unless, of course, your neighbor’s cat goes missing—then that’s really the drama everyone is focusing on!
Final Thoughts: The Economic Circus Continues!
To wrap it all up, the Riksbank is navigating a tricky economic web, attempting to stabilize inflation and spur a glimmer of recovery. So, as we await the unfolding saga following the November announcement and the next policy meeting on December 19, let’s grab the popcorn! Who knows? Maybe an unexpected twist will leave us reeling, like we just witnessed a fantastic punchline!
Stay tuned for more economics-focused adventures and antics as we put on our financial seatbelts, because if there’s anything we’ve learned from the Riksbank, it’s that the economy is a wild ride. Just remember, this isn’t just numbers; it’s our lives—wrapped in a cheeky comedy awaiting its next act!
For further inquiries, feel free to reach out to the Press service: 08-787 02 00. And don’t forget, there’s always more to come as this economic circus continues to roll on!
Updated 2024-11-07
In a significant move to bolster the economy and ensure inflation aligns with its target, the Executive Board of the Riksbank has announced a reduction in the key interest rate by 0.5 percentage points, bringing it down to 2.75 percent. Should the current economic and inflation forecasts hold steady, further cuts to the policy rate could be imminent, potentially occurring in December and throughout the first half of 2025, as previously indicated during September’s communication.
The Riksbank has progressively loosened monetary policy throughout the year, responding to diminishing inflation rates and persistent economic weakness. Despite some optimism among economic stakeholders about future improvements, definitive indicators of recovery remain scarce. To provide more substantial support to the economy, the Executive Board has deemed it essential to expedite the rate reduction, recognizing that a stronger economy not only serves as a goal in itself but also as a critical foundation for stabilizing inflation near its target levels.
The decision on the key interest rate applies from 13 November. A press meeting with Riksbank Governor Erik Thedéen and Åsa Olli Segendorf, head of the department for monetary policy, will take place today at 10:00 a.m. at Magasinet, Tullkammaregatan 12 in Falun. Participation requires a press ID or equivalent credentials. The press conference will be broadcast live on riksbank.se.
In connection with the announcement, a Monetary Policy Update is published which contains the Executive Board’s assessment of how new information affects the economic outlook and monetary policy. The next monetary policy report with forecasts will be published on 19 December.
Contact: Press service 08-787 02 00
Updated 2024-11-07
### Interview with Riksbank Governor Erik Thedéen on Recent Interest Rate Decision
**Interviewer:** Good morning, Governor Thedéen! Thank you for joining us today. The Riksbank has made quite a splash recently by cutting the key interest rate to 2.75 percent. Can you share the primary reasons behind this decision?
**Erik Thedéen:** Good morning! Thank you for having me. Our decision to lower the interest rate is fundamentally about providing immediate support to the Swedish economy, which has been experiencing challenges. With inflation gradually falling and overall economic activity remaining subdued, we felt that a quicker response was necessary to stabilize both growth and inflation outcomes.
**Interviewer:** It sounds like the economic context played a crucial role here. Can you elaborate on what you mean by “stabilizing inflation at the target”?
**Erik Thedéen:** Certainly. Our primary mandate includes ensuring that inflation remains close to our target. A rate cut can stimulate spending and investment by making borrowing cheaper, which can help boost demand in the economy. This, in turn, can contribute to stabilizing inflation around the desired levels. Ultimately, both economic support and controlled inflation are interrelated goals.
**Interviewer:** Many of our listeners might be curious about what this means for the average citizen. How will a lower interest rate impact their daily lives?
**Erik Thedéen:** A lower interest rate generally translates to cheaper borrowing costs for consumers. This development can lead to lower mortgage payments, reduced loan interest, and overall greater access to credit. We hope these changes will ease financial pressures for many households and help spur consumer confidence, which is essential for a robust economic recovery.
**Interviewer:** You mentioned potential risks in your press release, including geopolitical unrest and economic uncertainties. How do these external factors influence monetary policy decisions?
**Erik Thedéen:** External factors can significantly impact our economy and the effectiveness of our monetary policy. Geopolitical tensions, for instance, can lead to fluctuations in trade, affecting growth and inflation dynamics. We continuously monitor these developments to ensure our monetary policy remains responsive and supportive in the face of these challenges. Should the outlook change, so too may our approach.
**Interviewer:** Looking ahead, are there any more rate cuts on the table for early 2025 based on current projections?
**Erik Thedéen:** If the economic conditions and inflation targets remain as we project, there is a possibility for further rate cuts, particularly as we review our policy in December. We are committed to providing flexible and responsive monetary policy in light of new data and changing economic conditions.
**Interviewer:** Thank you, Governor Thedéen! Your insights are invaluable as we navigate these complex economic times. We’ll be watching closely to see how the situation evolves over the coming months!
**Erik Thedéen:** Thank you for having me! Let’s keep the conversation going, as it’s crucial we all stay informed during these dynamic times.
