The market players expect faster interest rate cuts from the Swedish Central Bank now than in June, according to a monthly survey conducted by Kantar Prospera.
Expectations of KPIF inflation are rising marginally among market players this summer.
Inflation expectations are currently exactly in line with the Swedish Central Bank's inflation target both in the short and long term, according to Kantar Prospera's latest survey among market players.
Expectations for growth are also being adjusted upwards slightly for the coming year, but are being adjusted downwards to the same extent in the long term.
As for the repo rate - currently at 3.75 percent after the interest rate cut in May - it is expected to have fallen to an average of 3.40 percent in three months and 2.60 percent in twelve months. This can be compared to 3.60 percent in three months and 2.80 percent in twelve months in Prospera's June measurement.
In the short term, an inflation rate of 2.0 percent is expected according to the KPIF measure, according to the latest measurement. In June, expectations were at 1.9 percent. In the long term, an inflation rate of 2.0 percent is expected, compared to 1.9 percent previously.
The Swedish Central Bank's inflation target is 2.0 percent in KPIF inflation, which is an inflation measure where the effects of mortgage rates have been excluded.
In the long term, expectations are for a KPIF inflation rate of 2.1 percent, compared to 2.0 percent previously.
The measurements by Kantar Prospera are conducted on behalf of the Swedish Central Bank.
