Sweden's central bank, Riksbank, has cut its key interest rate by 50 basis points to 2.75%, marking the largest reduction in over a decade, aimed at supporting economic activity amid declining inflation and stagnant growth. The Riksbank indicated that further cuts may occur in December and the first half of 2025 if the outlook for inflation and economic activity remains unchanged. Inflation in Sweden has dropped significantly from a peak of over 10% in late 2022 to 1.6% in October, well below the central bank's target of 2%. Meanwhile, Norway's central bank maintained its policy rate at a 16-year high of 4.5%, citing the need for a restrictive monetary policy to manage inflation. The Riksbank's decision comes amid global economic uncertainties, especially following Donald Trump's recent election victory, which raises questions about international trade and economic policies. Analysts expect complicated conditions of higher inflation and lower growth for central banks to navigate moving forward.