Inflation has fallen and more interest rate cuts are expected. But unemployment continues to be high. It's harder to get a job and much suggests that it will continue to be tough during the autumn, says Susanne Spector, chief analyst at Nordea.
BusinessThe Stockholm Stock Exchange ended the week on a high note after the US central bank chief said on Friday afternoon in his speech from Jackson Hole that it's now time to lower interest rates.
BusinessA welcome budget message that is applauded from several directions. Now the big question is what the money will be spent on. The Swedish Trade Union Confederation (LO) wants, among other things, to see increased child benefits, while the Confederation of Swedish Enterprise (Svenskt näringsliv) is calling for tax reforms.
BusinessMore banks are now lowering mortgage rates following the Swedish Central Bank's lowering of the repo rate. But the adjustments are modest. The banks will do everything to avoid lowering as much as the Swedish Central Bank in order to earn a little extra, says Christina Sahlberg, savings economist at the comparison site Compricer.
BusinessThe Swedish Central Bank's interest rate cut has been met with silence from leading mortgage banks. Neither Swedbank nor Handelsbanken – the two largest – have adjusted down mortgage interest rates. On the other hand, Swedbank was quick to lower the interest rate on savings accounts.
BusinessInflation is still clearly below the Swedish Central Bank's target. An interest rate cut next week is "rock-solid certain", according to analysts.
BusinessThis week, the inflation figure will be released, which will determine whether there will be an interest rate cut from the Swedish Central Bank shortly after and how large it will be in that case. A double rate cut is more likely right now than no cut at all, says Jens Magnusson from SEB.
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