Swedish cenbank seen on hold this week, hike expected by year-end

RIC=SERATE%3DECI By Simon Johnson STOCKHOLM, Sept 21 (Reuters) — Sweden's central bank will keep its key rate unchanged this week, but will flag for tighter policy before the end of the year amid rising inflation and tighter policy abroad, a poll of economists showed on Monday. 75% on Thursday, with the median forecast for one rate hike before the start of 2027. 25%, around where the central bank sees them as neither stoking nor holding back the economy. "The Riksbank is expected to remain on hold, citing low inflation and weak labour market," Morgan Stanley said in a note.

75% since September last year amid uncertainty about economic recovery and how quickly — and how much — conflict in the Middle East would push up prices. Since the summer, inflation — stripping out the effects of temporary tax cuts — has started to pick up. Oil is above $100 per barrel and the economy has picked up speed. 5% of its value over the last three months against the euro, adding to inflationary pressure.

The ECB has hiked rates twice this year and could tighten further if the inflation outlook deteriorates. "The Riksbank's wait-and-see approach is running its course," DNB economist Ulf Andersson said. " Nevertheless, the Riksbank is not in a hurry to hike. The pace of inflation eased in August and GDP looks to have been weak at the start of the third quarter.

"Inflation remains very low compared to other developed market economies," JPMorgan said in a note. " The Riksbank will announce its rate decision at 0730 GMT on Thursday, the same day as the central bank of neighbouring Norway. net)