US Fed official and Swedish banks project higher interest rates

Dallas Federal Reserve President Lorie Logan stated that US short-term interest rates must increase by at least 50 basis points to achieve a "slightly restrictive" monetary stance and steer inflation back toward two percent.

In Sweden, major financial institutions have revised their interest rate forecasts upward. Commercial bank Nordea expects the Riksbank to raise its key rate to 2.25 percent earlier than previously anticipated, maintaining that level through December 2028 citing economic strength and international tightening. Meanwhile, state-owned lender SBAB projected three consecutive rate hikes, raising the benchmark from 1.75 percent to 2.50 percent by February due to persistent inflation pressures.

Sources: Dagens Industri, Svenska Dagbladet, Sydsvenskan.