Expects to cut rate two more times in H2 (Il Sole 24 Ore Radiocor) - Stockholm, 08 May - The Swedish central bank, Riksbank, said it was cutting the policy rate by 0.25 percentage points to 3.75% and, if inflation still holds, expects to reduce it another two times during the second half of the year.

The central bank noted that inflation in March was at 2.2% and excluding energy it was at 2.9%, lower than its most recent forecasts.

"Information received since the Monetary Policy Report in March reinforces the outlook for inflation remaining close to the target also in the longer term. Inflation expectations are firmly anchored and wage increases are moderate," the central bank said.

"However, the outlook for inflation is uncertain. As inflation now falls from very high levels, there is uncertainty on both the upside and downside. The risks that may cause inflation in Sweden to rise again are primarily linked to the strong US economy, the geopolitical tension and the crown exchange rate. The adjustment of monetary policy going forward should therefore be characterised by caution, with gradual cuts to the policy rate.".

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(RADIOCOR) 08-05-24 09:48:50 (0239) 5 NNNN