Swedish CB slashes key interest rate to 1%

(MENAFN) Sweden's Riksbank stated that it has lowered its main interest rate by a quarter of a percentage point to 1 percent, reported AP. The central bank attributed the move to mild inflationary pressures and the effects of the euro zone financial crisis on the country's economy. It added that as a result of economic slowdown, growing jobless rate and restrained inflation, the rate would stay at this level for 2013. The bank noted that the fragile European economy has had a clear effect on the country's economy. It is worth noting that the central bank forecasts inflation to begin rising by the end of next year as the global economy would start rebounding, which is attributed in part to recent measures carried out by the euro zone to get a grip on their 3-year debt crisis.