Trade War: Scandinavian Countries Delay Easing Monetary Policy.

Central Banks of Sweden and Norway Hold Off on Rate Cuts Due to Trade War

The central banks of Sweden and Norway are refraining from lowering interest rates this week due to uncertainty related to the trade war initiated by U.S. President Donald Trump.

Central banks in Stockholm and Oslo will set lending rates after the U.S. imposed tariffs on imports last month, according to Bloomberg.

Almost all economists expect the Riksbank to keep its key rate at 2.25%, while Norway's bank is expected to maintain its base interest rate at 4.5%.

Analysis

Central banks are currently in a wait-and-see mode, assessing inflation and risks to economic growth, particularly those related to the trade war. Consumer prices in Sweden have become crucial for decision-making, and movements of other countries in global monetary policy also influence the decisions of these Scandinavian nations.