STORY: Swedish central bank cuts interest rate amid weak economy
SHOOTING TIME: May 8, 2024
DATELINE: May 9, 2024
LENGTH: 00:01:31
LOCATION: Stockholm
CATEGORY: ECONOMY

SHOTLIST:
1. various of Sweden's central bank
2. various of Stockholm street

STORYLINE:

Amid weak economic activity, Sweden's central bank lowered its benchmark interest rate from 4 percent to 3.75 percent on Wednesday.
   
This is the first rate cut in eight years. The Riksbank said the change to the policy rate will apply from May 15.
   
The Riksbank's executive board said that if the outlook for inflation still holds, two more policy rate cuts can be expected in the second half of the year.
   
"It was expected. They cut the interest rate because inflation is sinking towards the target even faster than the Riksbank had predicted, and the economy is weak," said Alexander Noren, an economic commentator on Swedish Television (SVT).
   
"However, they will proceed carefully and not spring any surprises," Noren added. "I am totally convinced that there will be no shock cut, as there was a shock rise."
   
Statistics Sweden's figures show that the country's CPI inflation rate had fallen to 4.1 percent in March, down from 4.5 percent in February. The central bank said that the inflation outlook is still uncertain due to factors such as geopolitical tension and a weak Swedish krona.
   
"We are in the midst of an economic winter with weak growth and rising unemployment. The economic situation is challenging," said Sweden's Minister for Finance Elisabeth Svantesson in mid-April.
  
The Riksbank has raised rates several times since May 2022. Before this round of interest rate hikes, the policy rate in Sweden had been at zero or sub-zero for more than seven years.

Xinhua News Agency correspondents reporting from Stockholm.
(XHTV)