Several factors indicate that the Swedish Central Bank will announce on Wednesday that it is lowering the interest rate, according to Bergqvist. After inflation increased at the beginning of the year, it has steadily decreased. Companies' price plans are backing down and the recovery of the Swedish economy is unexpectedly slow. In addition, growth in the global economy is affected by an unstable and difficult-to-navigate world situation.
More stimulus
The Swedish economy is in need of getting a little more stimulus and it is a vitamin injection for future confidence among both households and companies to lower the interest rate. In addition, it is a fairly cheap insurance premium for the Swedish Central Bank to proceed in this way, it does not take any major risks with it, says Bergqvist.
I would say that it is an open goal for the Swedish Central Bank to lower the interest rate.
He is supported by Torbjörn Isaksson, chief analyst at Nordea.
The Swedish Central Bank is on its way to re-evaluating the inflation pressure. Inflation has been lower than expected and growth in the economy not as strong as we expected. Therefore, we and the market believe that the interest rate will be lowered on Wednesday.
More uncertain
Torbjörn Isaksson also points to factors in the outside world that the Swedish Central Bank is likely to take into account.
It has become a more uncertain environment globally, with trade conflicts and tariffs. In addition, security policy challenges around the world. An interest rate cut gives companies and households the courage to dare to consume, invest and hire.
This speaks in favor of the Swedish Central Bank lowering the interest rate.
