Swedbank Predicts Swedish Central Bank to Cut Interest Rates Again

The Swedish Central Bank must act to handle the consequences of the Trump administration's tariffs, according to Swedbank's chief economist Andreas Wallström. At least one interest rate cut is a new main scenario among the bank's economists.

» Published: April 07 2025

Swedbank Predicts Swedish Central Bank to Cut Interest Rates Again
Photo: Christine Olsson/TT

Share this article

"The prospects for a rapid recovery in the Swedish economy are further clouded by global uncertainty and tariffs that will hit Swedish exports. Moreover, we see a weaker inflation pressure. Overall, this means that the Swedish Central Bank will need to act," writes Andreas Wallström.

Swedbank's economists have, as a result of the development, revised their forecast that Swedish GDP growth this year will remain at 1.5 percent and that the Swedish Central Bank will lower the interest rate.

"At least once more, to 2 percent," writes Wallström.

Previously, Swedbank's economists expected the Swedish Central Bank to be done with its interest rate cuts for the year after the interest rate cut to 2.25 percent in January and that growth this year would be around 2 percent.

A consequence of the development is that the variable mortgage rates will fall slightly more this year compared to the previous forecast, to an average of 3.1 percent, according to Swedbank's economists.

Tags

Author

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

More news

Court Rules Trump's Trade Tariffs Illegal in Major Setback
2 MIN READ

Court Rules Trump's Trade Tariffs Illegal in Major Setback

Swedish Electric Boat Maker Candela Expands Production to USA
3 MIN READ

Swedish Electric Boat Maker Candela Expands Production to USA

Dousa on Verdict: Tariffs Likely to Persist Despite Court Ruling
1 MIN READ

Dousa on Verdict: Tariffs Likely to Persist Despite Court Ruling

Rice Trade Dispute Halts US-Japan Customs Talks
1 MIN READ

Rice Trade Dispute Halts US-Japan Customs Talks

Court Rules Most Trump Tariffs Illegal but Allows Temporary Continuation
2 MIN READ

Court Rules Most Trump Tariffs Illegal but Allows Temporary Continuation

Klarna Prepares for New York Stock Exchange Debut
1 MIN READ

Klarna Prepares for New York Stock Exchange Debut

Sanctions Loom for Companies Trading with Russia
1 MIN READ

Sanctions Loom for Companies Trading with Russia

Wall Street Declines After July Inflation Data Released
2 MIN READ

Wall Street Declines After July Inflation Data Released

The Job Market in Sweden is Cooling Down - Significant Differences Between Industries

The Job Market in Sweden is Cooling Down - Significant Differences Between Industries

US Inflation Steady at 2.6 Percent in July
1 MIN READ

US Inflation Steady at 2.6 Percent in July

Extended Nuclear Shutdown Raises Electricity Prices in Southern Sweden
2 MIN READ

Extended Nuclear Shutdown Raises Electricity Prices in Southern Sweden

Price Pressure Reduces Alibaba's Second Quarter Profit
1 MIN READ

Price Pressure Reduces Alibaba's Second Quarter Profit

Ikano Bank Reports Loss Amid 670 Million Kronor Credit Losses
1 MIN READ

Ikano Bank Reports Loss Amid 670 Million Kronor Credit Losses

Norway and US Senator Clash Over Oil Fund's Caterpillar Divestment
1 MIN READ

Norway and US Senator Clash Over Oil Fund's Caterpillar Divestment

Tesla Denied New Charging Stations Amid Swedish Union Strikes
1 MIN READ

Tesla Denied New Charging Stations Amid Swedish Union Strikes

No Decision Yet in Legal Battle Between Lisa Cook and Trump
2 MIN READ

No Decision Yet in Legal Battle Between Lisa Cook and Trump

Stockholm Stock Exchange Sees Five Consecutive Days of Decline
2 MIN READ

Stockholm Stock Exchange Sees Five Consecutive Days of Decline

Saab to Develop Unmanned Underwater Vehicle for FMV
1 MIN READ

Saab to Develop Unmanned Underwater Vehicle for FMV

Swedish Economy Shows Recovery with Revised GDP Growth
1 MIN READ

Swedish Economy Shows Recovery with Revised GDP Growth

Academedia CEO Unconcerned About Potential Social Democratic Government
2 MIN READ

Academedia CEO Unconcerned About Potential Social Democratic Government