Swedish Central Bank Holds Steady on Interest Rates Amid Inflation Concerns

Today's message from the Central Bank that the interest rate remains unchanged at 2.25 percent is a reassuring message, thinks SEB's senior economist Robert Bergqvist. The Central Bank is keeping a cool head in a fairly turbulent situation, he says.

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Swedish Central Bank Holds Steady on Interest Rates Amid Inflation Concerns
Photo: Jessica Gow/TT

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He says that today's message about an unchanged interest rate is exactly what was expected, but that the Swedish Central Bank's signals about the future are a little softer than expected.

There are, of course, inflation setbacks that are a concern for the Swedish Central Bank, but it seems that they don't really put that much weight on it, but keep an eye on it, says Robert Bergqvist.

Torbjörn Isaksson, chief analyst at Nordea, is a little surprised but still thinks the assessment is correct.

At the same time, he also says that the signals about an unchanged interest rate going forward are a little softer than expected.

Given that inflation is as high as it is, we thought they might possibly emphasize a vigilance on the upswing, but that didn't happen.

What do you think about the forecast for the rest of the year?

Our forecast is that they will leave the interest rate unchanged at 2.25 percent going forward, but with that said, the risk is greater for an interest rate hike than for an interest rate cut here in the next few quarters.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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