Danske Bank economists expect “increased underlying price pressures.” They assume that the Riksbank will therefore raise the policy rate from today's 1.75 to 2.00 percent in the second half of 2026 and then to 2.25 percent in 2027.
The growth forecast is raised to 1.9 percent for this year and 2.6 percent in 2026. In the bank's latest forecast, published in September, the assessment was 1.1 and 2.7 percent, respectively.
“Households and the domestic economy are driving the recovery and will be further supported by expansionary fiscal policy next year,” they write.
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