Swedbank Predicts Interest Rate Cuts Will Boost Swedish Economy in 2025
Swedbank forecasts that interest rate cuts and fiscal policy in 2025 will invigorate Sweden's economy despite global uncertainties.
Key Points
- • Swedbank predicts interest rate cuts will boost the Swedish economy in 2025.
- • Supportive fiscal policy is also expected to contribute to economic growth.
- • Global growth is hampered by tariffs and US political uncertainties.
- • Interest rate cuts are likely to occur in the upcoming autumn.
In its latest economic forecast, Swedbank has indicated that upcoming interest rate cuts by Sweden's central bank, the Riksbank, alongside supportive fiscal policy, are poised to stimulate the country's economy next year. Published on August 26, 2025, this analysis comes amid significant global uncertainties that have raised concerns about economic growth worldwide.
According to Swedbank, the expected cuts in interest rates will invigorate domestic economic activity despite the challenges posed by rising tariffs and political instability in the United States, which are contributing to a slowdown in global growth. The bank's forecast emphasizes the importance of both monetary and fiscal measures in fostering economic resilience. It specifically highlights how supportive fiscal policy will bolster economic growth, complementing the effects of the interest rate cuts by the Riksbank.
Moreover, Swedbank anticipates that Sweden may experience two rate cuts in the coming autumn, further aiding the economic recovery process. With these measures, the central bank aims to create a conducive environment that promotes consumption and investment, vital for the growth of Sweden's economy.
The overall sentiment from Swedbank reflects a cautious optimism regarding the Swedish economy's outlook, suggesting that while external factors remain a concern, proactive monetary and fiscal policies can effectively stimulate local growth.
Swedbank's insights highlight the strategic use of economic tools to counteract international uncertainties and support national growth.
As the situation develops, analysts will be closely monitoring how upcoming fiscal measures and the anticipation of rate cuts will influence economic trends in Sweden in the next year.