US Fed official and Swedish banks signal further interest rate hikes

Central banks in the United States and Sweden face growing pressure to tighten monetary policy as inflation and economic momentum persist. Federal Reserve Bank of Dallas President Lorie Logan stated that short-term US interest rates must increase by at least 50 basis points to achieve a "slightly restrictive" stance and return inflation to two percent.

In Sweden, major financial institutions revised their monetary projections upward. Commercial lender Nordea expects the Riksbank to raise its key policy rate to 2.25 percent earlier than previously anticipated, keeping it at that level through December 2028 due to domestic growth and global central bank tightening. Concurrently, state-owned lender SBAB projected three consecutive rate increases, pushing the benchmark rate from 1.75 percent to 2.50 percent by February to counter persistent inflationary pressures.

Sources: Dagens Industri, Svenska Dagbladet, Sydsvenskan.