Sweden's central bank said Wednesday it was to cut its interest rate by 0.50 percentage points to 4.25 per cent, reported dpa. The cut was to take effect October 15, the Riksbank said, adding that the move was part of a coordinated measure with five other central banks. The bank's board of governors noted that "economic growth in Sweden is slowing down and that inflationary pressures are diminishing as an effect of the financial crisis." The Riksbank said it was to revise its forecast for both inflation and GDP, and noted that "the labour market is also showing clearer signs of weakening." The cut was made in a joint move with the Bank of Canada, the Bank of England, the European Central Bank, the Federal Reserve, and the Swiss National Bank. Sweden is a member of the European Union but not in the euro zone.
