Households win – higher wages, lower interest rates and tax cuts
What policy rate is required to keep inflation in check and soft land the economy?In Handelsbanken's new economic forecast, the bank's economists expect gradual rate cuts towards a neutral long-term level of around 2.25 percent, reached in the first half of 2025. Policy rate cuts, together with real wage increases and lower taxes, mean that households are taking the lead in the recovery. "For a family with an average mortgage, this means about SEK 3,700 a month in increased purchasing power, excluding inflation, next year compared with last year," says Handelsbanken's Chief Economist,