STOCKHOLM: Sweden's central bank on Thursday cut its key interest rate by 15 basis points to a new all-time low of -0.5 percent, citing the risk of slowing inflation and falling confidence in its monetary policy.

The bank moved its key rate into negative territory in February 2015 in a bid to encourage spending amid three years of stagnant prices despite strong growth.

Copyright AFP (Agence France-Presse), 2016