Riksbank's Thedeen says inflation is close to target, interest rates have come down and the labour market has started to improve

The Riksbank's comments suggest a dovish stance, indicating that inflation is nearing their target while interest rates are on the decline, which could signal an easing bias going forward.

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EUROPEAN OPEN: FRES LN record 2025;BEI GY sees lower FY EBIT; HO FP sees defence spending supporting sales; NOVOB DC upgraded at MS; US energy announcement, EZ inflation, UK Spring Statement ahead

Riksbank's Thedeen says inflation is close to target, interest rates have come down and the labour market has started to improve

European Movers: Thales (HO FP) +1.0%, Kuehne und Nagel (KNIN SW) +3.9%, Sika (SIKA SW) -1.6%, Fresnillo (FRES LN) -3.3%, Zurich Insurance (ZURN SW) -4.4% Beiersdorf (BEI GY) -10.1%

Worldpanel UK grocery inflation (4-weeks to Feb 22nd) 4.3% (prev. 4.0%)

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  • Core inflation may trail forecast in 2026.
Context

Given that core inflation may fall short of expectations for 2026, this might imply a prolonged scenario of lower rates to support economic recovery and a cooling labor market, impacting both the SEK and broader ECB policy considerations.

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