US Fed official backs rate hikes as Swedish banks update interest forecasts

Federal Reserve Bank of Dallas President Lorie Logan signaled that the United States central bank needs to increase short-term interest rates by at least half a percentage point. According to Logan, further tightening is necessary to achieve a "slightly restrictive" stance and guide inflation back toward the 2 percent target.

In Sweden, major financial institutions revised their monetary policy outlooks for the Riksbank. Commercial bank Nordea brought forward its expected rate increases, projecting the benchmark rate to reach 2.25 percent and remain unchanged through December 2028 due to accelerating economic growth and international central bank trends. Meanwhile, state-owned lender SBAB adjusted its timeline, moving its expectation for the first rate hike to December, followed by a second increase in February next year.

Sources: Dagens Industri, Svenska Dagbladet, Sydsvenskan.