The market expects four more cuts in the Swedish Central Bank's interest rate this year, from today's 3.50 to 2.50 percent in December.
Pricing suggests that there will be four more cuts down to 1.50 percent in the interest rate at some point during the autumn of 2025, according to a report from the major bank SEB.
The probability of a total of eight cuts by the autumn of 2025 has increased significantly over the past week, partly due to the unexpected double cut in the USA's interest rate – by 0.50 percentage points – last week and the subsequent stimulus package and interest rate cuts from China's central bank on Tuesday night.
The Swedish Central Bank, which has cut the interest rate twice earlier this year, is expected to cut the rate by 0.25 percentage points in Wednesday's decision, according to most analysts.
