The Swedish Central Bank (Riksbank) lowered its benchmark interest rate by 25 basis points to 1.75% for the first time since 2009 to bolster growth that slowed down in the third quarter.

The Riskbank said it may hold the seven-day repo rate unchanged over the coming years, while it slashed its interest rate forecast to 1.7% in the fourth quarter of 2012 from the previously estimated 2.3%.

Also, the bank cut its growth projections to 1.3% in 2012 from 1.5% while expects inflation to retreat to 1.5% next year.