Sweden cuts key interest rate saying Greek crisis has 'substantially increased uncertainty'

Associated Press

Sweden's central bank has cut its key interest rate to a record low of minus 0.35 percent saying "events in Greece over the past few days have substantially increased the uncertainty."

In a statement, the bank says the consequences of the situation in Greece for the eurozone as a whole and for Sweden "are difficult to judge."

Continue Reading Below

The Riksbank on Thursday lowered the repo rate by 0.10 percentage points, saying its "expansionary monetary policy is having an effect and inflation is rising."

The bank's decision in April to lower the repo rate had strengthened the krona "more than expected against several currencies."

The rate change takes effect July 8.