Swedish Central Bank Cuts Interest Rates as 2013 GDP Outlook Gets Revised Downward by 30%

“Sweden’s central bank cut interest rates by a quarter point on Tuesday to the lowest for more than two years but gave only slim hopes of further reductions to bolster one of Europe’s more robust economies.

The bank said it expected the policy rate to remain around the new level of 1.0 percent for the next 12 months, running contrary to some expectations it would point clearly to another swift cut in rates.

But economists said its forecasts for rates and lower than previously expected growth next year showed a slim chance of another reduction early in 2013.

It kept a forecast for growth this year of 0.9 percent but cut the 2013 outlook to 1.2 percent from 1.8 percent, reflecting the sagging of an economy that is still doing much better than most of its euro zone peers.”

Full article