“If the outlook for inflation continues to be favorable, it is not out of the question that the key interest rate may be lowered during the first half of this year,” writes the Riksbank in a press release.
The message is unexpectedly clear and “dove-like” in terms of monetary policy.
The Riksbank states that the interest rate increases – up from 0 to 4 percent in 2022-2023 – have contributed to pushing down inflation.
But the policy rate was, as expected, left unchanged at 4 percent, the highest level since 2008.
“Apart from energy prices, inflation is still too high and there is a risk of a setback,” writes the Riksbank.