Sweden ’s Central Bank cut its interest rate to a record low of 0.25%, citing “the weak development of the economy” as Sweden has been hit hard by the global economic downturn and exports have fallen, according to the Central Bank.

The bank expects the low rate to remain until autumn 2010, and said it was hard to predict when the economy would recover. In addition, the bank cited that the labour market was continuing to deteriorate rapidly. The rate cut is aimed to boost demand and consumption.

Sweden is a member of the European Union but is not in the single- currency Euro-zone.