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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.

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.

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.

Sweden Unemployment Rate 8.7% in May-24

- Sweden's unemployment rate decreased to 8.7% in May 2024, marking the lowest level since February 2024 but still remaining above historical averages.
- Despite a slight improvement in unemployment, mixed economic indicators indicate ongoing pressures in the labour market and economy overall.