Riksbank Cuts Interest Rate to 2% as Sweden’s Economic Recovery Stalls

Sweden’s central bank, Riksbank, cut its benchmark interest rate from 2.25% to 2% on Wednesday (June 18), in line with broad market expectations. The move comes as Sweden’s earlier signs of economic recovery have weakened, and inflation has turned out lower than previously forecast. Riksbank indicated that further rate cuts may be on the table later this year, citing global uncertainty, including the effects of U.S. President Donald Trump’s tariff policies. Swedbank predicted that Sweden’s economy will likely remain sluggish throughout the summer, with another rate cut to 1.75% expected by September. The bank also noted Riksbank’s growing impatience with the country’s weak economic performance.

https://internasional.kontan.co.id/news/ekonomi-melemah-bank-sentral-swedia-pangkas-bunga-acuan

The Fed Holds Rates at 4.25%–4.5% Amid Persistent Inflation and Strong Labor Market

Despite recent trade balance fluctuations, U.S. economic activity continues to expand at a solid pace. The labor market remains strong, with low unemployment, although inflation stays relatively elevated. In its latest meeting, the Federal Open Market Committee (FOMC) voted to keep the federal funds rate steady at 4.25% to 4.5%, while continuing to reduce its holdings of U.S. Treasury and agency mortgage-backed securities. The Committee reiterated its long-term goals of achieving maximum employment and 2% inflation. Although economic uncertainty has eased, risks remain on both sides of the mandate. Future policy adjustments will be data-dependent, considering labor market conditions, inflation pressures and expectations, as well as financial and global developments. The Committee affirmed its readiness to adjust the stance of monetary policy if risks emerge that could hinder its objectives.

https://internasional.kontan.co.id/news/pernyataan-hasil-fomc-bank-sentral-amerika-serikat-the-fed-18-juni-2025