Swedish lenders foresee earlier Riksbank rate hikes as Fed signals tightening

Swedish financial institutions are revising their monetary policy outlooks, anticipating earlier rate hikes by the Riksbank. Commercial lender Nordea projects two increases bringing Sweden's key interest rate to 2.25 percent through late 2028, citing robust domestic economic growth and global monetary tightening. State-owned SBAB expects three consecutive hikes from 1.75 percent to 2.50 percent by February to tame rising inflation.

Meanwhile, Federal Reserve Bank of Dallas President Lorie Logan indicated that the United States central bank needs to raise short-term rates by at least 50 basis points. Logan stated the move is necessary to render monetary policy "slightly restrictive" and bring inflation back to its 2 percent target.

Sources: Dagens Industri, Svenska Dagbladet, Sydsvenskan.