Swedbank expects long pause for interest rate cuts

» Published: March 07 2025

Swedbank expects long pause for interest rate cuts
Photo: Viktoria Bank/TT

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Swedbank is changing its forecast and now believes that the Swedish Central Bank will take "a long pause" before it becomes relevant to lower the interest rate from the current level of 2.25 percent.

According to Swedbank, the Swedish economy is showing clear signs of starting to strengthen.

"We are revising our forecast and no longer believe that the Swedish Central Bank will lower the interest rate again in this cycle", writes Swedbank in an analysis.

The bank predicts that it will take until 2026 before Swedish inflation is in line with the Swedish Central Bank's target of 2 percent, and by then, growth in the Swedish economy will be high and unemployment will be decreasing.

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

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