According to the forecast, inflation will continue to fall and drop below the Swedish Central Bank's target. The Swedish Central Bank therefore predicts that the policy rate will be lowered to 1.5 percent and will not be raised until 2027.
"Lower interest rates and inflation strengthen household finances and, together with large fiscal stimulus targeted at households, support good consumption growth in the coming years," the report states.
The economic report states that the Swedish economy is in a prolonged recession but that there are clearer signs that recovery has begun.
