Central Banks

Sweden Rate Cuts to Help Economy From Summer in NIER Forecast

The Brunkebergstorg stands deserted in view of the Sveriges Riksbank in Stockholm, Sweden, on Thursday, April 23, 2020. Confidence levels in Sweden plunged to record lows in April amid concerns that the coronavirus pandemic may push the Nordic region’s biggest economy into its worst recession since World War II.Photographer: Mikael Sjoberg/Bloomberg

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By Niclas Rolander

December 20, 2023 at 8:44 AM UTC

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Sweden’s central bank will start lowering its benchmark rate in the summer, as inflation subsides and unemployment increases, the National Institute for Economic Research said.

“Inflation will slow going forward and during the second half of 2024, it will be clearly below the Riksbank’s target,” the government authority said in a statement. “In 2024, wages will rise faster than prices, which, combined with a lower policy rate, will increase the households’ and businesses’ ability to consume and invest.”