Swedish lenders predict faster rate hikes as Federal Reserve signals tightening

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

In Sweden, major financial institutions are revising their interest rate expectations upward. Commercial bank Nordea brought forward its forecast for two policy rate increases, projecting the benchmark will reach 2.25 percent and remain there through December 2028. Nordea cited strengthening Swedish economic growth and international monetary tightening. Concurrently, state-owned lender SBAB projected three consecutive rate hikes by the Riksbank, raising the rate from 1.75 percent to 2.50 percent by February to address persistent inflation.

Sources: Dagens Industri, Svenska Dagbladet, Sydsvenskan.