MNI BRIEF: Riksbank Holds , Could Cut Two Or Three Times In H2
The Riksbank leaves its policy rate on hold at 3.75%.
The Riksbank left its policy rate on hold at 3.75% at its June meeting, as widely expected, and delivered dovish guidance, stating that if things unfolded as expected it could cut two or three times in the second half of the year.
The Swedish central bank shifted its policy rate path a little lower. It said that despite the recent unexpectedly strong core inflation print, fundamentals pointed to softening inflation and with the krona having ticked up it could ease further. In May its guidance was for two cuts in H2.
The rate path was nudged down to 3.33% in Q4 2024 from 3.44% previously with the rate falling to 3.08% in Q1 next year and to 2.56% at the end of the three-year forecast. The forecasts suggest an August cut is highly likely but that the third cut in H2 is far from certain.