Nordea Projects Interest Rate Cut by Riksbanken in June 2025
Nordea anticipates a rate cut from Riksbanken due to economic pressures and disappointing GDP data.
Key Points
- • Nordea predicts a 0.25 percentage point interest rate cut in June 2025.
- • Chief economist Annika Winsth stresses that earlier cuts could have boosted the economy.
- • Recent GDP figures were worse than expected, necessitating the cut.
- • Winsth warns that economic recovery will likely be slow and uncertain.
Nordea has revised its outlook, now forecasting a 0.25 percentage point interest rate cut by Riksbanken, Sweden's central bank, in June 2025. Chief economist Annika Winsth highlights that growing economic pressures, following disappointing GDP figures, have influenced this decision. Current predictions suggest that the interest rate will decrease from 2.25% to 2.00% by next month.
Winsth, who previously anticipated Riksbanken would maintain its rate, now believes that the central bank should have acted sooner to stimulate the economy. She expressed concerns that the recent GDP data could mislead the public due to being heavily impacted by volatile sectors like energy and food. Despite the predicted cut, Winsth cautions that the economic recovery may be slow and fraught with uncertainty for households and businesses, underscoring a caution against further rate forecasts for the time being due to potential inflation pressures, including the influence of tariffs from the Trump administration.
As she noted, “The recovery will be sluggish due to ongoing uncertainties, and while a cut is needed, we must remain vigilant about future economic developments.”