Increased probability of four interest rate cuts

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Increased probability of four interest rate cuts
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In line with global recession fears and increased downward pressure on global interest rates, the market is becoming increasingly convinced that there will be four rate cuts by the Swedish Central Bank's policy rate this year.

The probability of four rate cuts to 2.50 percent in the policy rate before the end of the year is currently at 60 percent in the pricing of the interest rate market, according to a report from the major bank SEB's economists.

A week ago, the probability of four rate cuts this year was at 12 percent.

In connection with the Swedish Central Bank's interest rate decision in August, the Swedish Central Bank's board said they expect two or three rate cuts of the policy rate this year. The Governor of the Swedish Central Bank, Erik Thedéen, has since said that it is leaning more towards three rate cuts.

The Swedish Central Bank has cut the policy rate twice this year to 3.50 percent. The next interest rate decision is scheduled for September 25.

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

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