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MNI RIKSBANK WATCH: Holds In June, Sees Chance Of Three Cuts In H2

(MNI) London
Riksbank leaves policy on hold and adds a third potential rate cut to its H2 projection.

The Riksbank left its policy rate on hold at 3.75% in June, as was widely expected, but stated that it could cut two or three times in the second half of the year, in a dovish shift from its previous guidance for two cuts.

The detailed rate projection supported the view that a cut in August is highly likely but that it is a close call whether there will be two or three cuts in H2. The rate path showed only gradual easing over the three-year forecast, with the policy rate down to just over 2.5% by the first half of 2027.

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The Riksbank left its policy rate on hold at 3.75% in June, as was widely expected, but stated that it could cut two or three times in the second half of the year, in a dovish shift from its previous guidance for two cuts.

The detailed rate projection supported the view that a cut in August is highly likely but that it is a close call whether there will be two or three cuts in H2. The rate path showed only gradual easing over the three-year forecast, with the policy rate down to just over 2.5% by the first half of 2027.

Keep reading...Show less