By Daniel Hunter

The Swedish central bank has cut interest rates to 0% in an attempt to tackle deflation.

Despite a relatively strong economy, prices are falling and the Swedish central bank wants inflation to be at 2%.

"The Swedish economy is relatively strong... But inflation is too low," the bank said.

It said interest rates would remain at zero until inflation pick ups.

The Swedish kronor fell to a four-year low against the US dollar and dropped by 1% against the euro after the news broke.

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