📝Expect Another Riksbank Rate Cut In August: SEB

As we expected, the Riksbank cut the policy rate by 25bps to 3.75 per cent in May and signalled that the policy rate forecast in the March MPR still is reasonable, indicating another two rate cuts in the second half of 2024. No new forecasts are presented in this Monetary Policy Update (MPU), but the Riksbank said that incoming data supports view of a further downturn in inflation. The bar for another rate cut in June is likely to be high and inflation needs to surprise on the downside compared to our forecast for that to happen. We stick to our forecast for a second rate cut in August, followed by another two in September and December. -SEB