STOCKHOLM, April 25 (Xinhua) -- Sweden's central bank (Riksbank) has decided to leave the interest rate unchanged at -0.25 percent, the bank announced in a statement on Thursday.
As a result, the already-weakened Swedish crown has plummeted in value.
The Riksbank's decision to delay its next interest rate hike suggests that its confidence in the economy has stalled and it is adopting a more cautious outlook.
"Unexpectedly low inflation both in Sweden and abroad, low interest rates abroad and uncertainty over global developments emphasise that there is a need to proceed with caution in monetary policy," the Riksbank wrote in the statement.
Consequently, the value of the Swedish crown fell to a 17-year low, according to CNBC. The Swedish crown sank 1.4 percent against the U.S. dollar to 9.55, its lowest level since August 2002.
This may be good news for Swedish export companies but comes as a blow to Swede's looking to import goods and holiday abroad, according to Swedish Television.
Interest rates are expected to be raised again towards the end of the year or at the beginning of next year.
