Danske Bank A/S

06/04/2024 | Press release | Distributed by Public on 06/03/2024 22:34

Nordic Outlook: Higher growth and lower interest rates

The latest edition of Nordic Outlook strikes a mostly optimistic tone for the major economies.

Economic data has been better than expected in the US, in Europe and in China and growth are exceeding expectations. So what about the inflation?

"We expect that inflation will continue to move towards the targets around 2 percent, but the road will be bumpy and uneven, as it has been over the past months as well. Especially services inflation and wage inflation creates risks around the inflation outlook and could also be the factor that lessens the risk appetite by central banks, so that central banks do now want to cut as much as has been priced in earlier," says Heidi Schauman, Global Head of Research, and elaborates:

"Currently, we forecast two rate cuts by both the Fed and the ECB in 2024, slightly less for the ECB than what we thought a few months back".

Heidi Schauman explains more about the outlook in the video: