Nordea Bank: The Swedish central bank may stand pat and keep the interest rate at 1.75% until the end of the year

(1) The chief analyst at a Nordic bank pointed out that although the Swedish central bank indicated there is a 50% probability of a 25 basis point rate hike in the second half of the year, the current low inflation rate and stable krona exchange rate suggest that the central bank is more likely to maintain its existing policy. (2) On Wednesday, the central bank kept interest rates unchanged at 1.75% and emphasized that it is prepared to act if necessary amid uncertainty; however, while the situation in the Middle East remains fragile, recent events and the decline in oil prices have reduced inflation risks. (3) Based on these factors, the Nordic bank maintains its forecast that the policy rate will remain at 1.75% for the rest of 2026.