New events, new conclusions

For the first time since 2019, the European Central Bank (ECB) today cut the policy rate by 25 basis points, which was completely in line with the market's expectations. This increases the chances that Sweden's central bank will make another reduction in the Swedish policy rate at the next monetary policy announcement on June 27, 2024.

Before today's cut by the ECB, I believed in a 25 basis point cut from the Swedish central bank at the earliest at the August 19th monetary policy announcement, but now I have to revise that thought.

I now believe and hope that Sweden's central bank acts already at the end of this month in an attempt to get Sweden's economy going again.