August rate cut may be off the table with Sweden’s inflation surge to 2.9%

Sweden’s inflation rate jumped to 2.9% in June, surprising analysts who predicted a range of 2.4% to 2.5%. This spike raises doubts about an August interest rate cut, as traders adjust their predictions to a mere 7-basis-point reduction.

The Riksbank is set to meet on August 19. With inflation pressures mounting, concerns from financial analysts suggest the central bank may delay cuts, despite recent predictions. The current economic climate presents challenges for policymakers.