Inflation is approaching the target while economic activity is weak. The Riksbank can therefore ease monetary policy. The Executive Board has decided to cut the policy rate by 0.25 percentage points to 3.75 per cent. If the outlook for inflation still holds, the policy rate is expected to be cut two more times during the second half of the year.Monetary policy and fading supply shocks have contributed to inflation falling and now being close to the target. In March, CPIF inflation was 2.2 per cent, and excluding energy prices, inflation was 2.9 per cent. The outcomes were lower than the Riksbank’s most recent ... (full story)