Sweden’s Riksbank forecasts 2 to 3 more interest rate cuts this year [Video]

Sweden’s Riksbank on Thursday said it may cut interest rates up to three more times this year — as the central bank’s governor, Erik Thedéen, warned it must proceed with caution.

“Two or three cuts is a forecast, it’s not a promise, and we will adapt monetary policy according to incoming information,” Thedéen told CNBC’s Arabile Gumede.

The Riksbank announced Thursday it held its policy rate at 3.75% at its June meeting, after cutting by 25 basis points in May as it became one of the first major economies to embark on the latest path of monetary easing.

It had forecast just two reductions during the second half of the year at its May meeting.

“Our inflation forecast is pointing to a good inflation outlook, we’re still already now very close to our target and our forecast has pointed to 2% inflation in the coming months and years,” Thedéen said.

“Of course, there is uncertainty …