Riksbank likely to halt rate cuts, maintains 2.25% policy rate: analyst

Published 14/03/2025, 09:04
Riksbank likely to halt rate cuts, maintains 2.25% policy rate: analyst

Sweden’s central bank, Riksbank, is expected to maintain its policy rate at 2.25%, signaling an end to its recent series of interest rate reductions.

Analysts from ING have predicted that there will be no change to the policy rate at the upcoming meeting on March 20, and no further rate changes are anticipated for the remainder of the year. This stance aligns with the indications given by the Riksbank in December.

The Swedish economy, which is particularly sensitive to interest rate fluctuations due to its substantial proportion of variable rate mortgage lending, experienced a sharp decline in demand as rates increased. However, the subsequent aggressive rate cuts have reportedly begun to yield positive results more rapidly than in many other economies.

The decision to halt the easing cycle comes after the Riksbank implemented a total of 175 basis points in rate cuts. The recent economic data has not provided substantial evidence to challenge the central bank’s current position on interest rates.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.