Swedish lenders revise rate forecasts while Fed official signals US tightening

Swedish financial institutions SBAB and Nordea have updated their monetary policy forecasts, anticipating earlier interest rate increases by the Riksbank. SBAB projects three consecutive rate hikes, bringing Sweden's policy rate from 1.75 percent to 2.50 percent by February due to persistent inflation. Nordea expects two rate adjustments to 2.25 percent, maintaining that level through December 2028, citing domestic economic growth and international monetary tightening.

In international central banking developments, Federal Reserve Bank of Dallas President Lorie Logan stated that the United States central bank must raise short-term interest rates by at least 50 basis points. Logan emphasized that policy needs to become "slightly restrictive" to return inflation to the Fed's 2 percent target.

Sources: Dagens Industri, Svenska Dagbladet, Sydsvenskan.