Market Expects Two Interest Rate Cuts This Year

Market's conviction of two interest rate cuts this year has increased the past week, shows the pricing among market actors.

» Published: June 11 2025

Market Expects Two Interest Rate Cuts This Year
Photo: Lars Schröder/TT

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A rate cut of 0.25 percentage points to 2.00 percent is in the cards at the Swedish Central Bank's upcoming rate decision next week. The probability in the pricing of the rate market is at 88 percent, shows a report from SEB's economists.

This can be compared to a probability of 64 percent just a week ago.

By year-end, the market is counting with a high probability of two rate cuts, down to 1.75 percent.

Last week, the final inflation figures for May came in lower than expected. Economists at all Swedish major banks have since then been counting on a rate cut in June.

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

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