Danske Bank Changes Riksbank Call to Pencil in Half-Point Cut

The Riksbank is likely to increase the pace of easing next week, as there is little indication that interest rate cuts so far have spurred the economic recovery the Swedish central bank is expecting, analysts at Danske Bank A/S said.

The bank’s team of strategists and economists now believe that officials will opt for a half-point cut next week, having previously expected them to continue reducing borrowing costs in quarter-point increments. The shift comes as economic data and surveys published in the past week have been disappointing, they said.