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CCTV Script 09/05/24

·1 min

Global monetary tightening is starting to ease as central banks around the world take action. The Swedish Central Bank has announced a cut to its benchmark interest rate for the first time in eight years. The bank cited weak economic activity and approaching inflation targets as reasons for the decision. The Swedish krona fell after the announcement, indicating a divergence in monetary policies between Europe and the United States. Analysts expect the European Central Bank to follow suit and cut rates at its next policy meeting. The concern is that this divergence could lead to currency depreciation and higher import prices.