Sweden’s Riksbank lowered borrowing costs for a second time since May and sketched out more easing than previously expected as inflation has fallen below its target and the largest Nordic economy is sputtering.

The central bank, which cut its benchmark rate to 3.5% from 3.75% in a decision announced on Tuesday, said it could consider as many as three more reductions this year. Its previous guidance had implied a maximum of two cuts after today.