Riksbank Seen on Hold but Slowly Shifting Towards Hikes
Dow Jones09-23 17:34
0934 GMT - The Riksbank is likely to hold its key policy rate at 1.75% Thursday, but Citi expects the rate path to signal that hikes are becoming more likely by year-end, economist Giada Giani writes. While inflation remains well below 2% on most metrics and unemployment is high, the economy is gathering momentum and the Swedish krona is weakening, Giani says. The bank now expects one 25 basis-point hike in December and one in spring 2027, having previously expected the policy rate to remain on hold throughout 2027. "The Riksbank can still enjoy more room to wait before tightening monetary policy compared to other central banks, and this in itself makes for a relatively more optimistic growth outlook for the Swedish economy."
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