US President Donald Trump "continues to add fuel to the geopolitical risk fire," says SBAB's chief economist, Robert Boije, in a press release.
"Based on the assumption, or perhaps I should rather say the hope, that things will calm down in the Middle East by the summer at the latest, we still see a good opportunity for unchanged policy rates throughout this year. But the unsettled is best," he says.
The risk of inflation has increased due to higher oil and natural gas prices, but as long as the impact is temporary, there is no reason for the Swedish Central Bank to raise the policy rate, according to the bank.
