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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
SWEDEN
Lower interest rates and easing inflation pressures should provide a tailwind to Swedish aggregate demand through the household cash-flow channel in the quarters ahead.
- On the household side, 70% of mortgages in Sweden are floating rate, meaning monetary policy transmits forcefully into aggregate demand through this channel. Through 2021 and 2022, floating mortgage rates rose from 1.5% to almost 5.0%.
- With household debt as a proportion of disposable income at almost 200% in 2022, increased debt servicing costs weighed on aggregate consumption and overall household lending growth contracted sharply.
- However, with interest rates having already been cut by 75bps this year and analysts expecting at least 50bps more cuts by December, household mortgage lending growth has seemingly bottomed out, and interest payments (as a % of disposable income) have started declining.
- Combined with real wage gains on the back of easing inflation, this should provide a platform for aggregate consumption growth to accelerate (particularly with the savings rate already at multi-decade highs).
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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