Sweden's central bank, the Riksbank, has cut its key rate by 0.25 percentage points to 3.75 per cent.
The move, the second rate cut in three weeks, was announced just hours before policymakers from the European Central Bank, who control monetary policy for 12-nation euro zone, were to meet amid widespread predictions they too would lower interest rates.
Sweden is not a member of the euro zone but its rate cut increased pressures for lower European interest rates, which have long been sought by euro zone political leaders.
AFP