The central bank of Sweden announced the interest rate decision on Wednesday, where the bank kept rates unchanged at 2.0% and lowered forecasts for rates in the coming years amid the downbeat global growth outlook.

The bank cut forecast for the third quarter of 2012 to an average of 2.4% from 2.9% forecast in July. The bank also lowered forecasts for the third quarter of 2013 to 3.0%, compared with 3.4% forecast earlier. This move came after the several hikes during the year, where the bank aims to support recovery and improve growth.

The bank also cut expectations for an annual growth of 1.7% in gross domestic product in 2012 from the prior expectations of 2.2%; while for inflation, the bank adjusted the CPI predictions to 2.1% from a prior 2.7%.