Sweden' central bank cut its key interest rate to 3.50% from 3.75% as expected today and said it could possibly speed up policy easing ahead.
"If the inflation outlook remains the same, the policy rate can be cut two or three more times this year, which is somewhat faster than the Executive Board assessed in June," the central bank said in a statement.
The Riksbank left its key rate unchanged at 3.75% at its previous meeting, in June, but said then that it could make up to three more cuts before the end of the year amid lower price pressures.
Since then, inflation has continued to ease, undershooting the central bank's target of 2% for two months in a row. The economy slowed in the second quarter.
Analysts had unanimously predicted a cut of a quarter percentage point with the policy rate seen likely to end the year at 3.00% or lower.
The Riksbank was among the first central banks to start cutting rates in the current policy easing cycle, lowering its key rate for the first time in around eight years in May.
