Sweden’s Riksbank to announce rate decision
Sweden’s central bank, the Riksbank will hold a meeting to set interest rates today.
The country’s economy entered a recession in Q3 2023 in part due to rate hikes and a troubled housing sector. Nevertheless, certain sectors could fuel a rebound such as the arms industry amid its accession into NATO as well as its mining industry which may become one of Europe’s main sources of rare earth minerals amid strives for resource independence. Likewise, Swedish battery manufacturer Northvolt appears likely to challenge Chinese dominance in the sector having begun construction of a new factory in Germany. While the Riksbank is likely to lower rates in the near future to spur economic activity, it is unlikely that it will decide to do so at today’s meeting instead keeping pace with the European Central Bank (ECB) which has a similar trajectory.
In the longer-term, Sweden’s strategically important industries may enable it to become one of the best performing economies in Europe as its sectors provide a credible alternative to imports from Russia or China.
