Sweden Interest Rate

The Riksbank left its key policy rate steady at 4% on March 27th 2024, in line with market expectations, but said it is likely that the borrowing cost can be cut in May or June if inflation prospects remain favourable. Inflation has continued to fall, and forward-looking indicators imply that it is approaching 2%. Policymakers now expect inflation to fall to 3.5% this year, lower than 4.4% seen in the November projections. For February 2024, inflation is currently at 4.5%. Meanwhile, the central bank also revised its projections for the policy rate lower. The key interest rate is seen at 3.8% this year, below 4.1% seen in the November, before falling to 3% in 2025 (vs 4%) and 2.7% in 2026 (vs 3.6%). Also, the Swedish economy is seen expanding 0.3% in 2024, compared to a 0.2% contraction previously forecasted. The growth rate for 2025 was kept at 1.9%.