Markets are starting to expect an interest rate cut

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Markets are starting to expect an interest rate cut
Photo: Jonas Ekströmer/TT

The likelihood that highly leveraged households and companies will be helped by a reduction in the key interest rate during the spring or early summer has increased, according to pricing in the fixed-income market.

The probability that the Swedish Central Bank will cut the key interest rate sometime before August is currently just over 50 percent, according to an SEB report. This compares with a probability of 12 percent just a week ago and zero a month ago.

The interest rate hike this year, which the market and some analysts saw as possible as recently as a month ago, has been postponed until the fall of 2027, according to SEB.

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

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