Swedish bank predicts key interest rates will drop in November
A new interest rate prognosis from Swedish state-owned SBAB bank predicts that Sweden's central bank will hike key interest rates substantially in April, but will be able to lower them again as early as November.
In the new report, SBAB bank believes that the central bank will raise key interest rates by 0.5 percentage points to a total of 3.5 percent.
Unlike many other banks, SBAB does not believe that the central bank will raise rates at the following meeting this summer, rather that rates will remain the same from April until November, after which they will drop by 0.25 percentage points to 3.25 percent.
"We believe that we will soon see underlying inflation and not least food prices dropping back," chief economist Robert Boije told TT newswire.
It further predicts that the average interest rate on mortgages could hit a peak of 4.8 percent in the autumn, and that the drop in key interest rates in November will be the first of many, leading to a key interest rate of 2 percent by 2024.
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In the new report, SBAB bank believes that the central bank will raise key interest rates by 0.5 percentage points to a total of 3.5 percent.
Unlike many other banks, SBAB does not believe that the central bank will raise rates at the following meeting this summer, rather that rates will remain the same from April until November, after which they will drop by 0.25 percentage points to 3.25 percent.
"We believe that we will soon see underlying inflation and not least food prices dropping back," chief economist Robert Boije told TT newswire.
It further predicts that the average interest rate on mortgages could hit a peak of 4.8 percent in the autumn, and that the drop in key interest rates in November will be the first of many, leading to a key interest rate of 2 percent by 2024.
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