Source: Xinhua

10-09-2008 08:40

STOCKHOLM, Oct. 8 (Xinhua) -- Swedish central bank Riksbank announced Wednesday to cut the benchmark interest rate by 0.5 percentage point to 4.25 percent.

The global financial crisis threatens to reinforce the current slowdown in economic growth with diminished inflationary pressures as a result, the Riksbank said in a statement.

The Bank of Canada, the Bank of England, the European Central Bank, the U.S. Federal Reserve, and the Swiss National Bank all announced they would be lowering interest rates Wednesday in a coordinated action to stem the ongoing financial crisis, it added.

Sweden's economy was slowing down and inflationary pressures were dampening as a result of the financial crisis, the statement said, noting that the labor market is also showing clearer signs of weakening.

Following the cut in the repo rate of 0.5 percentage point, the Executive Board of the Riksbank has also decided to make a 0.5 percentage point cut in the interest rate on the loans allocated in the auction of six-month loans held on Wednesday.

Riksbank expressed the belief that the cut together with other central banks would restore confidence and yield positive effects.

 

Editor:Xiong