Markets are starting to expect an interest rate cut

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.