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November 07, 2024
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Sweden: 50bp Rate Cut to 2.75% (Consensus 2.75%) in Nov-24

  • The Riksbank reduced its policy rate by 0.5 percentage points to 2.75%, supporting economic recovery amid weak domestic demand and rising unemployment.
  • Continued bond sales and a maintained SEK 20 billion holding underscore a dual focus on financial stability and readiness for policy flexibility.
  • External risks from strong US growth, weak eurozone and Chinese markets, and geopolitical uncertainties could necessitate future adjustments to the Riksbank’s rate outlook​​​.
September 25, 2024
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Sweden Policy Rate 3.25% (consensus 3.25%) in Sep-24

  • The Riksbank cut its policy rate by 25 basis points to 3.25%, in line with consensus, and signaled potential further cuts at a faster pace if inflation and economic activity remain stable.
  • Future rate cuts are likely, with two more reductions expected in 2025, contingent on sustained favourable inflation developments and improved economic activity.
  • Uncertainty remains due to geopolitical risks, global economic conditions, and energy price volatility, which could alter the trajectory of monetary policy adjustments.
August 20, 2024
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Sweden Policy Rate 3.5% (consensus 3.5%) in Aug-24

  • The Riksbank cut the policy rate by 25 basis points to 3.5%, consistent with the economic consensus, reflecting confidence in stable inflation trends and the need to support weak economic activity.
  • Future rate cuts are likely, with two or three additional cuts possible this year, contingent on the inflation outlook remaining favourable and economic conditions stabilizing.
  • The Riksbank emphasizes a cautious, data-driven approach to monetary policy, recognizing external risks such as geopolitical tensions and global economic uncertainty that could influence future rate decisions.
June 27, 2024
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Sweden Policy Rate 3.75% (consensus 3.75%) in Jun-24

  • The Riksbank maintained the policy rate at 3.75%, consistent with the consensus, reflecting confidence in favourable inflation trends and a cautious approach to monetary easing.
  • Future rate cuts, potentially two or three in the year's second half, are contingent on sustained disinflationary developments and economic stability.
  • The decision balances the need for inflation control with recognising weaker economic activity and external risks, ensuring a flexible and data-driven monetary policy approach.

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