Riksbank cuts its Rate by 25bps to 3.75% (as expected by a majority of respondents); Policy rate is expected to be cut two more times during H2 if inflation outlook cuts (bringing total 2024 cuts to 3 vs prev. guided just over 2)
Important
SourceNewsquawk
SectionOther Central Banks
POLICY
- The risks that may cause inflation in Sweden to rise again are primarily linked to the strong US economy, the geopolitical tension and the krona exchange rate.
- The adjustment of monetary policy going forward should therefore be characterised by caution, with gradual cuts to the policy rate.
- When inflation approaches the target while economic activity is weak, monetary policy can be eased.
INFLATION
- Information received since the Monetary Policy Report in March reinforces the outlook for inflation remaining close to the target also in the longer term.
- Inflation expectations are firmly anchored and wage increases are moderate.
Via Riksbank