Sweden’s central bank cut its main interest rate for the first time since 2009 and signalled it may keep the benchmark unchanged over the next year as Europe’s debt crisis saps growth in the largest Nordic economy.

The seven-day repo rate was lowered a quarter point to 1.75 per cent. It lowered its rate forecast to 1.7 per cent in the fourth quarter next year, on average, from a 2.3 per cent estimate. “They basically signalled no more rate cuts,” said Michael Grahn, an analyst at Danske Bank. This disappointed the market, he said.