The bank claims that inflation is now under control despite deviations in the fall. Signs of prices increasing again are considered minimal.
“The Riksbank largely sticks to the previously outlined plan and lowers the interest rate in December, signaling further easing in the beginning of next year,” Nordea adds. The bank reiterates its forecast that the Riksbank will lower the interest rate to at least 2.00 percent in the spring.
“We expect the press release to have similar language as in September and November, thus indicating further monetary easing at the beginning of 2025,” writes Nordea. “The door should be left open for two rate cuts in the first half of 2025, which is slightly softer than previously signaled.”
In terms of the economic outlook, the bank’s analysis points towards a cautious approach to monetary policy in response to the current inflationary environment. Despite the recent fluctuations in prices, the overall trend suggests that inflation is being managed effectively.
Nordea’s projections align with the broader consensus among financial institutions and economists, who anticipate a gradual decrease in the interest rate over the coming months. This strategy is aimed at supporting economic growth while maintaining price stability.
Furthermore, the bank’s assessment of the situation reflects a nuanced understanding of the complex factors influencing inflation dynamics. By carefully analyzing the data and considering various scenarios, Nordea is able to provide a comprehensive and informed perspective on the economic landscape.
Overall, Nordea’s analysis offers valuable insights into the current state of inflation and monetary policy in Sweden. By combining rigorous research with strategic forecasting, the bank is able to navigate the uncertainties of the economic environment and provide sound recommendations for policymakers and investors alike.