DNB Predicts No Swedish Interest Rate Cuts This Year

No interest rate cut this week or for that part later this year. This is the Norwegian major bank DNB's forecast ahead of this week's interest rate decision from the Swedish Central Bank.

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DNB Predicts No Swedish Interest Rate Cuts This Year
Photo: Henrik Montgomery/TT

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DNB instead notes that inflation will continue to be high at the same time as the current interest rate level (2.0 percent) is considered sufficiently low for the Swedish economy to be stimulated.

"In the slightly longer term, we stick to our previous forecast that the Swedish Central Bank will need to address the high inflation with indicative two increases in early 2027, which means that we will then end up at 2.50 percent", writes DNB in a comment.

Those who hope that the Swedish krona will continue to strengthen against the US dollar and the euro do not have much to gain.

DNB's forecast is that the current levels with one euro around 11.20 kronor and 9.75 kronor for one dollar will persist, however with strong fluctuations in the near future.

At the same time, the unemployment rate is expected to rise on the labor market and amount to 8.2 percent next year and 7.7 percent in 2027.

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

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