Danske Bank Predicts Swedish Interest Rate Cut in November

Danske Bank expects the Swedish Central Bank to lower the interest rate once more this year. Despite the inflation being described as "too high" in a new economic trend report.

» Published: September 03 2025 at 06:00

Danske Bank Predicts Swedish Interest Rate Cut in November
Photo: Mads Claus Rasmussen/RITZAU/TT

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In November, Danske Bank believes that the inflation prospects have improved and therefore expects the Swedish Central Banken to lower the interest rate by 25 points to 1.75 percent.

In its economic report, Danske Bank writes that 2025 risks becoming "yet another lost growth year". The bank is lowering its growth forecast for the year to 1.1 percent. In the latest forecast from June, the bank counted on growth of 1.6 percent.

"The uncertainty ahead of 2026 is significant, especially given the unexpectedly high inflation outcomes and a continued weak labor market", says chief economist Susanne Spector in a comment and continues:

"The slow recovery also raises the question of whether the current interest rate level is more restrictive than what the Swedish Central Banken previously assessed”.

The forecast for unemployment remains at 8.7 percent for the full year. On the other hand, Danske Bank now believes in slightly higher unemployment next year, 8.4 percent compared to 8.2 percent in the June forecast.

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

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