Swedish central bank open to cut but uncertainty high, minutes show

STOCKHOLM, June 25 (Reuters) - Sweden's central bank could ease policy again before the end of the year if growth disappoints and inflation remains tame, minutes from the meeting last week at which the Riksbank cut its key interest rate to 2.00%, published on Wednesday, showed.

"We are signalling some probability that it may be warranted to cut the rate further," Riksbank Governor Erik Thedeen said. "But I want to emphasise that this signal should not be over-interpreted, given the uncertain situation."

President Donald Trump's on-again, off-again tariffs and conflict in the Middle East have added to geopolitical uncertainty , already at a high level after Russia's invasion of Ukraine and Sweden's economy has slowed sharply.

Gross domestic product shrank 0.2% in the three months through March on an quarterly basis and the government this week lowered its forecast for the full year to 0.9%.

At the same time, rate-setters' worries that a trade war could ramp up price pressure again have eased in recent months as the pace of inflation has slowed.

However, the face-off between Israel and Iran could still push up oil prices - and inflation - and the central bank said inflation could be higher or lower than the current forecast.

"The ongoing trade and geopolitical conflicts are creating risks that, if they materialise, could present monetary policy with difficult choices," Thedeen said.

The Riksbank will deliver its next scheduled rate decision on August 20.