KI expects three interest rate hikes by 2027

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KI expects three interest rate hikes by 2027
Photo: Jessica Gow / TT

"Next year, the oil price will continue to fall back, but inflation will nevertheless rise and be above but close to the target," KI writes in a press release.

Inflation, according to the CPIF measure, is expected to amount to 1.3 percent this year and then rise to 2.2 percent in 2027, which is just above the Swedish Central Bank's inflation target of 2.0 percent.

Unemployment this year is forecast to reach 8.6 percent and then fall to 7.9 percent.

"GDP growth will be higher in the autumn of 2026 when domestic demand grows faster. However, the recovery in the labor market will take longer, and at the end of 2027 unemployment will still be somewhat elevated," KI writes.

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By TT News AgencyEnglish edition by Sweden Herald, adapted for our readers

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