Could lower than expected Swedish inflation figures mean further rate cuts?

CPIF inflation, as reported by Statistics Sweden, has declined to 1.5% in December—lower than the expected 1.7%—raising speculation about an interest rate cut in January.

Experts point out that the core inflation, now at 2.1%, is approaching the Riksbank's target and could influence the decision to lower the key interest rate soon.

Olle Holmgren from SEB echoed sentiments that current inflation levels suggest a likelihood of a key interest rate reduction by the Riksbank next month.

Analysts at Swedbank anticipate more aggressive monetary policy from the Riksbank, predicting further rate cuts in 2025 given the recent inflation figures and economic conditions.

Read at www.thelocal.se