Sweden lowers interest rates to lowest in three years and suggests end of loose monetary policy cycle.

The Swedish central bank has cut interest rates for the third time this year and has indicated that it expects to keep borrowing costs stable while waiting for more signs of economic recovery. According to a statement on Tuesday, the Swedish central bank has reduced its benchmark interest rate to 1.75%, the lowest level in three years. Of the 22 economists surveyed by Bloomberg, 9 predicted this change while the rest predicted that rates would remain unchanged. The central bank's rate path suggests that there will be no further rate cuts by the end of 2028. The Swedish central bank stated, "If inflation and economic activity prospects remain unchanged, it is expected that the policy rate will remain at this level for the foreseeable future."