US Fed official signals rate hikes as Swedish banks adjust Riksbank forecasts

Federal Reserve Bank of Dallas President Lorie Logan stated that the US central bank needs to increase interest rates by at least another 0.5 percentage points to achieve a "slightly restrictive" stance and guide inflation back to its two percent target.

Simultaneously, major Swedish financial institutions revised their projections for the Riksbank's policy rate. Commercial bank Nordea brought forward its expected timing for rate increases, citing accelerating domestic economic growth and global policy trends. Nordea foresees the key rate reaching 2.25 percent and remaining stable at that level through 2028. Meanwhile, state-owned lender SBAB expects the Swedish central bank to execute rate hikes in December and February, adjusting its previous forecast of a November move.

Sources: Dagens Industri, Svenska Dagbladet, Sydsvenskan.