Riksbank maintains its Rate at 3.75% as expected; if inflation prospects remain the same, the policy rate can be cut two or three times during H2'24

Commentary:

• Conditions for an inflation rate in line with the target also in the slightly longer term are good; long-term inflation expectations are signalling strong confidence and wage increases are moderate.
• New information indicates that inflationary pressures are largely as expected.
• The most recent outcome for inflation excluding energy prices was somewhat higher than expected, which underlines that there can be setbacks when inflation adjusts towards the target. This emphasises the need for policy rate cuts to be made gradually.
• Given that inflation is fundamentally developing favourably, economic activity is assessed to be somewhat weaker, and the krona exchange rate is a little stronger, the forecast for the policy rate has been adjusted down somewhat.

Rate Forecast:

Economic Forecasts: