The bank is turning around and believes in fewer interest rate increases

The bank no longer believes that the Swedish Central Bank will raise the key interest rate in May, but expects two further increases in the near future. That would mean a key interest rate of 2.25 percent in August.

In the previous forecast, the policy rate was projected to be 2.5 percent at the end of the summer.

The revision comes after signals in recent days from the European Central Bank (ECB) that it is keeping all options open ahead of the next meeting on April 30. ECB Council member Francois Villeroy de Galhau has said there is “no rush” to raise interest rates.