”The Riksbank begins to lay the groundwork for a possible rate hike”
The Riksbank is keeping the policy rate unchanged at 2.25 percent. However, a hike may be on the way, says Annika Alexius, a professor of economics at Stockholm University, in P1 Morgon.
Photo: Mostphotos/Roland Magnusson
On March 20, the Riksbank announced its decision to maintain the policy rate. The Swedish economy is showing signs of recovery, but the economic cycle remains weak. Inflation is expected to range between 2 and 3 percent this year before stabilizing at the target level.
The same day on P1 Morgon, Radio Sweden, the development of interest rates was discussed by Annika Alexius, Susanne Spector, chief economist at Danske Bank, and Americo Fernandez, household economist at SEB.
”Inflation is quite likely to continue rising. I believe the Riksbank is starting to lay the groundwork for a possible future hike,” says Annika Alexius in the program.
She highlights several factors that could drive inflation up, including Trump’s trade war and rising inflation in the U.S. Sweden has had lower inflation than many other countries, something Alexius believes is not sustainable in the long run.
Last updated: 2025-03-21
Source: Department of Economics