Markets underestimating Riksbank rate rises

As today’s minutes show few signs that policymakers are concerned about the economy overheating, we have pushed back our forecast for a rate rise to September 2018. But we still expect rates to be increased at a faster pace than the Riksbank or markets expect. And since we forecast inflation to be higher than the Riksbank anticipates ahead of its December meeting, we do not expect it to extend QE.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.