Handelsbanken is now joining other actors and expects the Swedish Central Bank to make a double rate cut, i.e. 0.50 percentage points, next week.
This since the latest GDP indicator shows that Sweden's GDP fell by 0.1 per cent during the third quarter compared to the previous quarter, which is significantly worse than the Swedish Central Bank's own forecast, notes the bank.
Handelsbanken's message now means that all four major banks expect a double rate cut. At the same time, Handelsbanken writes that it "holds on to our view that the Swedish economy is heading towards a faster recovery than the Swedish Central Bank assesses".
The interest rate decision will be announced on Thursday.
