Economists Split on Potential Swedish Interest Rate Cut

Even if the Central Bank keeps the door open for an interest rate cut further ahead, Nordea's chief economist Annika Winsth is doubtful about whether it will happen. SEB's chief strategist Olle Holmgren, on the other hand, believes increasingly strongly in a cut as early as June.

» Published: May 08 2025 at 10:04

Economists Split on Potential Swedish Interest Rate Cut
Photo: Jonas Ekströmer/TT

The Swedish Central Bank's decision to keep the interest rate at 2.25 percent is a wise decision, according to Annika Winsth.

We have an interest rate that is fairly normal at present.

However, the uncertainty is unusually high, with the American trade war affecting economic prospects and thus inflation, making it difficult to predict.

So, a further interest rate cut, which the Swedish Central Bank leaves open in its statement, should not be counted on, says Winsth.

I don't think they are opening up for a cut in June, they would have been clearer about it, she says.

She does not think that a cut should be expected later this year either.

Olle Holmgren at SEB makes a different analysis. He believes that the Swedish Central Bank is a bit clearer than expected in considering a rate cut.

They say that inflation appears to be able to become lower and that this would speak in favor of a more lenient monetary policy going forward. This is a strong signal that they will probably cut the interest rate, likely already in June, which is in line with the prognosis we published earlier in the week.

Loading related articles...

Tags

TTT
By TTTranslated and adapted by Sweden Herald
Loading related posts...