Sweden’s National Institute of Economic Research (NIER) forecasts two interest rate increases, one at the end of 2026 and another in 2027. This prediction comes as household consumption shows signs of increasing momentum. According to NIER’s Director-General Albin Kainelainen, this rise in consumption is driven by growing real incomes, rather than temporary subsidies or government support measures. The institute’s new forecast suggests a strengthening economic outlook despite the anticipated monetary policy adjustments. The projections indicate a shift in economic conditions warranting a response from the central bank. These anticipated rate hikes signal a potential move to curb inflation and maintain economic stability. The NIER’s analysis provides key insights into the future trajectory of the Swedish economy.