Investing.com - Sveriges Riksbank, Sweden's central bank, cut its benchmark interest rate to a record low on Thursday, 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 50 basis points to 0.25% from 0.75%. Most analysts expected a cut of 25 basis points to 0.50%.
In addition, the central bank said that repo rate increases are not expected until the end of 2015.
Following the announcement, the Krona plunged sharply against the U.S. dollar, with USD/SEK soaring 2.06% to trade at 6.8451, compared to 6.7319 ahead of the decision.
The Krona was also down sharply against the euro, with EUR/SEK jumping 2.04% to 9.3471.