Swedish central banks to cut key rate on economic downturn

The central bank of Sweden, the Risksbank, reported it plans to decrease the repo rate to 1.75%, down by 0.25% citing the deepening recession in the Euro Zone that impacts country's exports. The bank also announced when the situation stabilizes the rate will be gradually raised. Moreover, Risksbank cut the GDP growth forecast to 1.3% next year and to 2.3% in 2013.