Swedish banks adjust rate forecasts as global central banks signal tightening

Dallas Federal Reserve President Lorie Logan stated that the US central bank must raise short-term interest rates by at least 50 basis points to make monetary policy "slightly restrictive" and guide inflation back toward the 2 percent target.

In Sweden, financial institutions are updating their expectations for the Riksbank following domestic economic growth and international policy shifts. Nordea brought forward its timeline for rate adjustments, forecasting the benchmark rate will reach 2.25 percent and remain at that level through December 2028. Meanwhile, state-owned lender SBAB projected a faster pace of monetary tightening, predicting the Riksbank will raise its key interest rate at three consecutive meetings, increasing it from 1.75 percent to 2.50 percent by February in response to rising inflation pressures.

Sources: Dagens Industri, Svenska Dagbladet, Sydsvenskan.