If inflation prospects remain unchanged 2-3 cuts possible in H2 (Il Sole 24 Ore Radiocor) - Stockholm, 27 Jun - The Swedish central bank, the Riksbank, said it was keeping the policy rate unchanged at 3.75% as monetary policy has to be adjusted gradually as the most recent inflation data excluding energy has been somewhat higher than expected despite the favorable trend.

The Riksbank said that if inflation prospects remain the same, the policy rate can be cut two or three times during the second half of the year.

Inflation for this year is now seen at 3.1%, down from 3.5% in March, falling to 1.3$ in 2025, from a previously forecast 1.5%, and coming in at 1.6% in 2026, unchanged from the March forecast. In the second quarter of 2027, CPI is seen at 2.0%.

"Given that inflation is fundamentally developing favourably, economic activity is assessed to be somewhat weaker, and the krona exchange rate is a little stronger, the forecast for the policy rate has been adjusted down somewhat," the central bank said.

The policy rate this year is now seen at 3.7% against 3.8% previously, falling to 2.9% in 2025, form 3.0% previously, and 2.7% in 2026, unchanged from the March forecast. In the second quarter of 2027, it is seen at 2.6%.

Gross domestic product groth this year is seen at 1.1%, up from 0.3% in March, rising to 1.7% in 2025, from a previously expected 1.9%, and 2.4% in 2026. In the second quarter of 2027, it is seen at 2.1%. The jobless rate this year is now seen at 8.5%, from 8.3% previously, falling to 8.3% in 2025, from a previous 8.2%, and 8.0% in 2026, unchanged compared to the previous forecast. In the second quarter of 2027, it is seen at 7.7%.

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(RADIOCOR) 27-06-24 10:02:56 (0213) 5 NNNN