The cut from 25bp to 3.50% was delivered as widely expected. The Riksbank message of “two to three” more rate cuts for 2024 was however a tad on the dovish side to our expectations. In the statement, the bar to change this outlook is also seemingly high as they seem confident that upside risks to inflation have “declined significantly”.
We adjust our call by adding a 25bp rate cut in September, meaning that we expect 25bp cuts at the three remaining meetings for 2024. For 2025, we expect three cuts during the first half of the year, reaching an endpoint of 2.00% by summer (previously 2.00% by Q4-25. - Danske Bank
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