Swedbank Economic Outlook: Swedish rate hike in sight
The Swedish economy continues to recover after the peak of the pandemic, although supply-chain problems and higher prices, not least for electricity and fuel, are expected to have a dampening effect. Higher inflation will lead the Riksbank to begin reducing its balance sheet in 2022 and to start hiking the repo rate in 2023, according to Swedbank Economic Outlook.The economic recovery in Sweden is continuing, but the growth rate will dampen going forward. Household consumption will continue to drive the economic recovery, but we estimate that high electricity prices will limit households’