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Swedish c.bank cuts rates to new record low

Published 07/02/2009, 03:37 AM
Updated 07/02/2009, 03:40 AM

STOCKHOLM, July 2 (Reuters) - Sweden's central bank cut its key interest rate by 25 basis points to a new record low of 0.25 percent in a surprise move on Thursday, pulling out the stops to revive an economy hit by its worst recession since the 1940s.

Nearly all economists in a Reuters poll expected the Riksbank to keep rates on hold at 0.5 percent, in line with a previous central bank forecast that suggested rates would stay around that level at least until early next year.

Official Swedish rates are at their lowest since records began in 1907. (Editing by Mike Peacock)

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