Alongside the Riksbank’s decision to reduce the policy rate by 25bp today to 3.5%, policymakers also lowered their rate expectation for the end of this year from either 3.25% or 3.0% at the June meeting to 3.0% or 2.75% at today’s meeting. This is broadly in line with our forecast for the policy rate to fall to 2.75% by the end of the year.
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