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MNI BRIEF: National Institute Sees Riksbank Hikes Start Sep

(MNI) London
(MNI) London

Sweden's National Institute of Economic Research sees inflation running at more than double its target level this year and it envisages the Riksbank scrapping its zero percent interest rate policy and starting to tighten from this September. It forecast a single hike this year with the policy rate rising to 0.8% in 2023 and 1.0% in 2024.

The NIER's own survey, its Economic Tendency Indicator highlighted the dilemmas facing policymakers, with consumer confidence plunging 15.5 points from 89.0 to 73.5, hitting its lowest since 2009. NIER forecast inflation on the target CPIF measure would stand at 5.2% this year and 2.8% in 2023, before dropping back to the 2.0% target in 2024.

MNI London Bureau | +44 203-586-2223 | david.robinson@marketnews.com
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MNI London Bureau | +44 203-586-2223 | david.robinson@marketnews.com
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