Investing.com - Sveriges Riksbank, Sweden's central bank, cut its benchmark interest rate to a record low on Tuesday, in an effort to ward off deflation from taking hold in the largest Nordic economy.
The Riksbank said it was lowering the benchmark interest rate by 25 basis points to 0.0% from 0.25%. Most analysts expected a cut of 15 basis points to 0.10%.
In addition, the central bank said it was delaying any repo rate increases until the middle of 2016 from the end of 2015.
Following the announcement, the Krona plunged against the U.S. dollar, with USD/SEK rising 0.66% to trade at a four-year high of 7.3389, compared to 7.2801 ahead of the decision.
The Krona was also down sharply against the euro, with EUR/SEK jumping 0.91% to hit a four-month peak of 9.3448.