Central Banks
Sweden Set for Jumbo Interest Rate Cut, Nordic Economists Say
- The Riksbank has said quarter-point cuts are most likely
- Most economists now expect a larger cut to be announced Nov. 7
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An increasing number of forecasters expect the Riksbank to next week deliver its first half-point interest rate cut in more than a decade, following data that signals the Swedish economy remains stalled.
Shrinking output in the third quarter, declining retail sales and exporters that are concerned about weakening demand all indicate that an expected recovery remains elusive after almost three years of stagnation. That should heighten urgency at the central bank, which expects an increase in activity to propel the inflation measure it targets back up to 2% next year.