Interest Rates in Sweden May Be Cut by 50 Basis Points This Week

Forex - Nordea predicts that the Swedish Central Bank (Riksbank) may cut the policy interest rate by 50 basis points to 2.75% on Thursday, due to the need to control inflation and policymakers' desire to swiftly support the country’s fragile economy. Riksbank's statements in September highlighted the possibility of a 50 basis point cut as an option in upcoming meetings. Nordea's chief analyst Torbjorn Isaksson stated, "A weak krona suggests that it is unlikely for the Riksbank to open the door for another 50 basis point cut in December; otherwise, it could have been on the agenda." Nordea expects a 50 basis point cut this week, followed by a 25 basis point cut in December, forecasting that the policy rate will bottom out at 2% in the second quarter of the year.