Swedish banks revise Riksbank outlooks as US Fed signals further rate hikes

Swedish lenders SBAB and Nordea have adjusted their monetary forecasts, signaling earlier interest rate increases by the Riksbank. SBAB predicts three consecutive policy rate hikes, rising from 1.75 percent to 2.50 percent by February, driven by persistent inflationary pressures. Conversely, Nordea expects two rate adjustments bringing Sweden's key interest rate to 2.25 percent, anticipating this level will remain stable through December 2028 amid strengthening domestic economic growth and international monetary tightening.

Concurrently, Federal Reserve Bank of Dallas President Lorie Logan stated that the United States central bank must increase short-term borrowing costs by at least 50 basis points. Logan noted that monetary policy needs to become "slightly restrictive" to ensure inflation returns to the target rate of 2 percent.

Sources: Dagens Industri, Svenska Dagbladet, Sydsvenskan.