Now, inflation has been below the Swedish Central Bank's target, 2.0 percent, for three months in a row. At the same time, notices of layoffs are reaching historically high levels.
"This sends a very clear signal to the Swedish Central Bank to proceed with rapid interest rate cuts. We can now expect cuts at every remaining meeting this year and likely also the first meetings next year," says Tobias Brännemo, chief economist at the Unionen trade union, in a written comment.
Colleague Håkan Regnér at the Saco academic organization adds:
"Inflation can get stuck at too low a level if the Swedish Central Bank doesn't act in time. Time to take a bigger step and cut by 50 points (0.50 percentage points)", he says.
The Confederation of Swedish Enterprise's chief economist Sven-Olov Daunfeldt agrees.
"It's becoming increasingly clear that the Swedish Central Bank was too aggressive in its rate hikes earlier," he writes in an SMS to TT.
"If inflation continues to be lower than expected, the Swedish Central Bank should also consider a double cut," he continues.
The Swedish Central Bank itself has signaled 2-3 cuts of 0.25 percentage points each before the turn of the year.
