US Fed official signals rate hikes while Swedish banks revise Riksbank forecasts

Federal Reserve Bank of Dallas President Lorie Logan indicated that the US central bank needs to raise short-term interest rates by at least half a percentage point. According to Logan, the increase is required to achieve a "slightly restrictive" policy stance and guide inflation back toward the 2% target.

Meanwhile, major lenders in Sweden have adjusted their monetary forecasts regarding the Riksbank. Commercial bank Nordea brought forward its projected interest rate increases, predicting the benchmark rate will reach 2.25% and remain at that level through December 2028 due to accelerating domestic economic growth and global policy adjustments. Simultaneously, state-owned lender SBAB revised its timeline, delaying its expected initial rate hike from November to December, with a second increase anticipated in February.

Sources: Dagens Industri, Svenska Dagbladet, Sydsvenskan.