Wells Fargo expects the Swedish central bank to keep interest rates unchanged at 3.75% next week, marking a pause in the easing cycle of 25 basis points of rate cuts that began in early May, according to Jinshi. Market participants will pay close attention to the Swedish central bank's latest economic forecasts for any potential insights into the future direction of the policy rate. In the previous May statement, policymakers noted that they expected to cut interest rates twice more in the second half of this year as long as the inflation outlook remained good. But Wells Fargo expects Sweden's policy rate to be cut three more times in 2024, each time by 25 basis points. The bank expects a pause in rate cuts in June and a 25 basis point cut in the third quarter - but as inflation moves closer to its target later this year, the Swedish central bank may cut interest rates twice more in the fourth quarter.
