According to data from Jinshi, Magnus Lindskog of Sweden's commercial bank stated that the trade war threatens economic recovery, and the Swedish central bank may cut interest rates. Although the central bank emphasizes uncertainty, increased tariffs could lead to a decline in European demand, putting downward pressure on inflation.
The bank expects that the deterioration in sentiment in May will continue to show a weakening Swedish economy, prompting the central bank to ease policy, despite inflation still being above target. A weakening economy is expected to lead to three interest rate cuts this year.