world-economy

Sweden's Riksbank Expected to Raise Rates in Q4 2026

Sweden's central bank is likely to increase borrowing costs by 25 basis points in the fourth quarter of 2026, marking an earlier move than previously anticipated, according to market expectations.

The timing reflects evolving monetary policy across Europe. The European Central Bank is projected to raise rates twice during 2026 as inflation pressures persist, though forecasters expect euro-zone inflation to moderate to near the ECB's 2% target by 2027 after reaching 2.7% this year.

Meanwhile, Mexico's central bank has concluded its two-year easing cycle with a quarter-point rate cut, signaling a shift in policy direction across major economies as officials balance inflation concerns against economic growth considerations.