Riksbank explains sharp adjustment

With this note, the Swedish central bank sought to explain why its recent interest rate cuts have taken rates lower than the level contained in its December forecast.

The Riksbank, which is one of the very few central banks to publish an interest-rate forecast, says: "The economic downturn looks to be both more profound and more prolonged than both the Riksbank and other analysts previously believed. We have adjusted down our forecasts for growth in Sweden and abroad since December."

"At the

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