Summer Recovery Set to Bring Nordic Rate Hikes Into View

As more of the population in Sweden and Norway gets inoculated, Bloomberg Economics expects rising demand at home and abroad to drive a recovery in the second quarter: By the end of 2021, BE forecasts output will exceed its pre-pandemic level in both economies. Norway will probably be the first major European economy to lift interest rates since the virus struck -- probably pulling the trigger in December. Facing a long stretch of weak inflation, Sweden’s Riksbank is unlikely to withdraw support until 2023.