Riksbank Minutes: cuts in the second half of the year 📉

The Riksbank's monetary policy meeting in June 2024 highlighted several key points. The policy rate was maintained at 3.75%, with discussions suggesting potential gradual rate cuts in the second half of the year if inflation aligns with forecasts. Rsikbank noted economic weakening, particularly in the labor market, and also inflation cooling near the 2% target. The board emphasized a cautious approach to monetary policy adjustments, considering global economic uncertainties and domestic financial stability risks, including household and corporate debt pressures.

In terms of economic outlook, the Riksbank noted that while inflation in Sweden had decreased significantly from over 10% to 2.3%, recent data showed a mixed trend, with service prices rising unexpectedly. The Swedish economy experienced slower growth driven by weakened household consumption and housing investments, but a gradual recovery is expected. The board also stressed the importance of monitoring global geopolitical risks and their potential impacts on Sweden's economic stability. The Swedish krona gains slightly after the publication of the minutes.

Source: xStation 5