Stockholm - Sweden's central bank said Tuesday it was to cut its interest rate by half a percentage point to 0.50 per cent, saying the move was "necessary to dampen the fall in production and employment."
One of the six governors on the Riksbank board, Lars O Svensson, wanted a greater cut to 0.25 per cent, and "entered a reservation," the central bank said in a statement.
The Riksbank governors said Sweden has been hit "hard" by the global financial dowturn.