US Fed official and Swedish banks project further rate hikes

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 two percent target.

Concurrently, Swedish lenders are revising their interest rate projections for the Riksbank upward. Commercial bank Nordea brought forward its forecast for policy rate increases to 2.25 percent, projecting the benchmark will stay at that level through December 2028 due to accelerating economic growth in Sweden and international tightening trends. Additionally, state-owned lender SBAB projected three consecutive rate hikes by the Riksbank, raising the benchmark rate from 1.75 percent to 2.50 percent by February in response to persistent inflation.

Sources: Dagens Industri, Svenska Dagbladet, Sydsvenskan.