The expectations can be compared with the situation a week ago. At that time, the probability implied by market pricing was only 44 percent for a rate increase this year, according to a report from economists at major bank SEB.
The backdrop is the violent developments in the Persian Gulf last week, which have given a strong boost to global energy prices. This is spreading inflation concerns to the fixed-income market, which is therefore expecting monetary policy tightening.
The next interest rate announcement from the Swedish Central Bank will come on August 20. The key interest rate, which affects interest rates on variable mortgages, is currently at 1.75 percent.
