The assessments vary among economists, several bank economists believe it is already decided. But Danske Bank's experts believe that the Swedish Central Bank will implement another interest rate cut in 2025, having previously estimated two.
"The labor market shows few signs of improvement, which increases the pressure on the Swedish Central Bank to support the economy in order to reach the inflation target in the long run," says the bank's chief economist Susanne Spector in a comment.
Danske Bank now estimates that inflation according to the KPIF measure will reach 2.5 percent this year (1.7 percent in the previous report) and then cool down to 1.7 percent in 2026 (1.2 percent).
Unemployment is simultaneously estimated to be at a higher level, 9.0 percent, than previously forecast (8.2 percent). Despite these negative factors, Danske Bank sees an improved housing market where housing prices increase by around 5 percent.
"Housing prices approach, but do not reach, the levels before the price drop in 2022 by the end of the forecast period," the bank writes in the report.
