STOCKHOLM (AP) — Sweden’s central bank on Thursday cut its key interest rate by half a percentage point to 2.75% in what was described as the largest reduction over a decade.
Riksbanken said the cut, the fourth this year, was “to provide further support to the economy and help inflation stabilize at the target.”
It added that “if the outlook for economic activity and inflation remains the same,” the policy rate may also be cut in December, and during the first half of 2025.
The monetary policy was gradually eased over the course of the year, as inflation declined and economic activity remained weak, the central bank said in a statement. “Despite an expectation among economic agents of better times ahead, there are still few clear signs of a recovery."
Inflation in Sweden in October was of 1.6%, according to Statistics Sweden. It was below the central bank’s 2% target. The seasonally adjusted unemployment rate was 8.5% of the work force during the third quarter of 2024.
The last time the rate was cut in Sweden was in September and it was by 0.25 percentage points.
The interest rate cut was the largest reduction in over 10 years, Swedish news agency TT wrote. At its highest in February 2023, the 12-month inflation rate was 12.0%.
The cut was effective from Oct. 13, the central bank said.
In neighboring Norway, the central bank Thursday maintained the policy rate unchanged at 4.5% Thursday. Norges Bank Governor Ida Wolden Bache said it “will most likely be kept" there to the end of 2024.
The Norges Bank said that in recent years, the policy rate has been raised significantly to bring down inflation, with the rate held at 4.5% since December 2023. The interest rate has contributed to cooling down the Norwegian economy and dampening inflation. In Norway, the consumer price index was 3.0% for the period September 2023-September 2024.
Sweden is part of the European Union but does not use the euro currency, and Norway stands outside the EU.
Sweden Riksbank Governor Erik Thedéen presents the interest rate announcement at a press conference at Magasinet in Falun, Sweden, Thursday, Nov.7, 2024. (Anders Wiklund /TT News Agency via AP)
JERUSALEM (AP) — Israel’s parliament passed a law early Thursday that would allow it to deport family members of Palestinian attackers, including the country’s own citizens, to the war-ravaged Gaza Strip or other locations.
The law, which was championed by members of Prime Minister Benjamin Netanyahu's Likud party and his far-right allies, passed with a 61-41 vote. But legal experts said that any attempt to implement it would likely lead to it being struck down by Israeli courts.
It would apply to Palestinian citizens of Israel and residents of annexed east Jerusalem who knew about their family members' attacks beforehand or who “express support or identification with the act of terrorism.”
They would be deported, either to the Gaza Strip or another location, for a period of seven to 20 years. The Israel-Hamas war is still raging in Gaza, where tens of thousands have been killed and most of the population has been internally displaced, often multiple times.
It was unclear if it would apply in the occupied West Bank, where Israel already has a long-standing policy of demolishing the family homes of attackers. Palestinians have carried out scores of stabbing, shooting and car-ramming attacks against Israelis in recent years.
Oded Feller, a legal adviser to the Association for Civil Rights in Israel, dismissed the law as “populist nonsense.” He said it was unlikely to be applied, because there is no legal way for the Interior Ministry to send an Israeli citizen to another country or to Gaza.
His organization doesn't plan to challenge the law unless authorities try to enforce it, in which case he expects any court challenge to succeed.
Eran Shamir-Borer, a senior researcher at the Israel Democracy Institute and a former international law expert for the Israeli military, agreed that the law was likely to be struck down by the Supreme Court.
“The bottom line is this is completely nonconstitutional and a clear conflict to Israel’s core values,” Shamir-Borer said.
Israel captured Gaza, the West Bank and east Jerusalem in the 1967 Middle East war — territories the Palestinians want for their future state. It withdrew settlers and soldiers from Gaza in 2005, but has reoccupied parts of the territory since Hamas' attack on Oct. 7, 2023 triggered the war.
Israel annexed east Jerusalem in a move not recognized by most of the international community. Palestinians there have permanent residency and are allowed to apply for citizenship, but most choose not to, and those who do face a series of obstacles.
Palestinians living in Israel make up around 20% of the country's population. They have citizenship and the right to vote but face widespread discrimination. Many also have close family ties to those in the territories and most sympathize with the Palestinian cause.
Melanie Lidman reported from Tel Aviv, Israel. Tia Goldenberg contributed to this report from Tel Aviv.
Follow AP’s war coverage at https://apnews.com/hub/israel-hamas-war
Israeli Prime Minister Benjamin Netanyahu, center, speaks to Defense Minister Yoav Gallant, left, at the opening of the 25th Knesset session marking the anniversary of the "Iron Swords" war, in Jerusalem, Monday, Oct. 28, 2024. (Debbie Hill/Pool Photo via AP)
Israeli Prime Minister Benjamin Netanyahu, center, flanked by Defense Minister Yoav Gallant, second from left, attends at the opening of the 25th Knesset session marking the anniversary of the "Iron Swords" war, in Jerusalem, Monday, Oct. 28, 2024. (Debbie Hill/Pool Photo via AP)
Israeli Prime Minister Benjamin Netanyahu speaks at the opening of the 25th Knesset session marking the anniversary of the "Iron Swords" war, in Jerusalem, Monday, Oct. 28, 2024. (Debbie Hill/Pool Photo via AP)
