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Sweden holds borrowing rate

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Sweden holds borrowing rate

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Sweden’s central bank has kept its benchmark interest rate unchanged at 1.5 percent and plans to keep it there for just over one year.

But in a statement the bank’s policymakers did leave the door open to a rate cut in the autumn if Europe’s debt crisis worsens.

Sweden has shown some resilience to the crisis, though the economy has slowed sharply and the central bank said it expected growth to be weak for some time.

However it did raise its forecast for growth to 0.6 percent from the 0.4 percent it saw in April.