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VIEW: Nordea Make Some Hawkish Adjustments to Their Call

RIKSBANK

Nordea tweak their Riksbank baseline view, they now look for:

  • 25bp rate hike in June to 3.75%.
  • One final rate hike by 25bp in September to 4.00%.
  • On hold during the remainder of 2023.
  • Rate cuts from April 2024, and a policy rate at 3.00% come year-end 2024.
  • Scaling up the sales of government bonds to SEK5bn from SEK3.5bn per month after the summer.
  • They previously expected the policy to peak at 3.75% (with a final hike this month), followed by rate cuts to 2.00% in 2024.
  • They note that “the main reason for the changed forecast is the weak SEK. Also, other central banks have turned more hawkish. In addition, the inflation outcome in May was a disappointment and the Swedish economy in general has shown more strength than expected.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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