Investing.com -- Analysts from Nordea Bank Abp (OTC:NRDBY) predict that the central banks of Sweden and Norway will end their current easing cycle within the next six months. This comes as an expected rebound in domestic demand is anticipated across the Nordic region.
The Riksbank in Sweden and Norges Bank in Norway are both projected to reach their terminal rates by July, set at 2% and 4% respectively. These rates are 50 basis points beneath their current levels, according to the largest lender in the Nordic region's latest economic outlook, released Wednesday.
Nordea's forecast for Sweden aligns with the consensus projection from the most recent Bloomberg survey of economists. The bank had previously predicted that the Riksbank would reach the 2% key rate by the end of the year.
However, Nordea's projections for Norway are significantly lower than the median forecast in Bloomberg's latest survey. This survey indicates a consistent decrease in Norges Bank's key rate through to the end of next year, with borrowing costs predicted to be at 2.9%.
In contrast, Nordea's September forecast saw officials implementing a total of three quarter-point cuts, bringing the rate to 3.75% by the end of next year.
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