(Bloomberg) -- Expectations for short-term inflation rates in Sweden held steady after the central bank laid out a path of a cut in interest rates later this month and again during the first half of next year.
The closely-watched reading of price expectations published on Wednesday showed that labor market parties, purchasing managers and money market players see annual price increases with a fixed interest rate, the Riksbank’s target measure, at 1.7% in one year from now and 1.9% in two years.
In September, the previous time the wider group was surveyed, the one-year reading was also at 1.7% while the two year had been 1.8%. Prospera also publishes monthly surveys that only target money market players.
The survey, which is commissioned by the Riksbank, also showed:
- CPIF expected to be 2.0% five years from now, unchanged from September
- Policy rate of 2.0% in 12 months versus 2.5% in September’s survey
- Policy rate of 2.0% in 24 months, versus 2.3% previously
- Money managers expect EUR/SEK rate of 11.24 in 12 months, 10.94 in 24 months
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