Handelsbanken Predicts Final Interest Rate Cut in September

The major bank expects the Swedish Central Bank to make a final interest rate cut on September 23. Then it's over.

"It's a bit like flipping a coin to make a forecast about the Swedish Central Bank now. If they don't cut in September, it's highly doubtful whether there will be any more cuts", says chief economist Christina Nyman in a press release.

Inflation is expected to be around 2 percent by the end of the year, at the same time as consumption is expected to gradually increase next year.

"The temporary reduction of food VAT can contribute to higher consumption without driving inflation next year", says Christina Nyman.

The government's budget initiatives in combination with reduced mortgage rates and higher real wages will benefit households' economy. The major bank expects the average household to get around 800 kronor more per month in purchasing power, while for a family with children it can be up to 3,000 kronor more per month.