Swedish cen bank holds rate, cuts growth forecast

SWEDEN - Sweden's central bank, the Riksbank, left its key repo rate unchanged at 3.75 percent as expected on Wednesday, saying inflation should be in line with its two percent target over the next two years.

But the Riksbank also said in its inflation report that the prospects for global growth looked worse than in October and it cut its forecast for Swedish economic growth over the next two years.

"The overall assessment, including the risk spectrum, is that inflation one to two years ahead will

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