Swedish cuts rate to 0.25 per cent

STOCKHOLM, July 3 (AFP): The Swedish National Bank cut its reference lending rate by half a percentage point to 0.25 per cent on Thursday to counteract inflation that remains weak despite an improving economy.
"Inflation is lower than expected and it is now assessed that underlying inflationary pressures are clearly lower than assessed in April," the bank said in a statement.
The "repo" rate is now at a historic low point first reached in July 2009, during the global economic crisis.
Economists had expected a smaller cut, from the former level of 0.75 per cent to 0.50 per cent.
Central bank directors are trying to get inflation back up towards a target of 2.0 per cent, a level last seen in the first half of 2012.
For 19 consecutive months, Swedish inflation has remained locked in around 0.1 per cent.
Meanwhile, "economic activity continues to strengthen in the Swedish economy," the bank noted, adding that it did not anticipate another increase in the reference rate "until the end of 2015."