Sweden's central bank, the Riksbank, has reduced its policy rate by 25 basis points from 4.00% to 3.75%, marking its first rate cut since 2016. This decision, anticipated by market analysts, initiates a broader easing cycle with two additional rate cuts expected later this year amid an uncertain inflation outlook. The move aligns with a trend among major central banks, including the Bank of England, which is also considering rate cuts amid global economic adjustments.