Sweden's central bank, Riksbank, has recently reduced its benchmark interest rate by half a point to 2.75%. This is the first rate cut in ten years and is aimed at providing support to the country's stagnant economy.

The decision to cut rates aligns with the predictions of the majority of economists surveyed, with 18 out of 21 accurately predicting the magnitude of the cut. The central bank's proactive approach reflects its efforts to stimulate economic activity in challenging conditions.

It is expected that further cuts may be implemented in December and the first half of 2025.