Swedish inflation

Banks expect faster interest rate hikes

The Swedish economy is performing stronger than expected, assesses SEB, which is now raising its forecast for GDP growth to 2.7 percent this year.

– The recession is about to end, and it will probably happen already this autumn, says the bank's chief economist Jens Magnusson to Placera.

This means that SEB also expects the Riksbank to raise the key interest rate in March next year, compared to the previous forecast at the end of 2027. The background is, in addition to the unexpectedly strong economy, that inflation has been surprisingly high for three months in a row.

Inflation has also caused Swedbank to change its interest rate forecast, writes EFN. Now the bank's economists believe that the next increase will come as early as this autumn, compared to 2028 earlier.

Riksbank stop opens up for interest rate hike in autumn

Several of the Riksbank's executive board members are open to raising the key interest rate. This is shown in this morning's minutes from the latest monetary policy meeting, reports Affärsvärlden.

The unexpectedly high inflation during the summer means that it may be necessary to raise the interest rate already this autumn, says member Anna Seim.

Per Jansson would not "hesitate to act" and is ready to raise in larger steps than the usual 0.25 percentage points if inflation problems become serious.

Aino Bunge emphasizes, according to the minutes, that it will be important in the autumn to get answers to whether temporary summer-related factors are behind the surprisingly high inflation, writes Afv.