Summer Recovery Set to Bring Nordic Rate Hikes Into View

(Bloomberg) -- As more of the population in Sweden and Norway gets inoculated, Bloomberg Economics expects rising demand at home and abroad to drive a recovery in the second quarter: By the end of 2021, BE forecasts output will exceed its pre-pandemic level in both economies. Norway will probably be the first major European economy to lift interest rates since the virus struck -- probably pulling the trigger in December. Facing a long stretch of weak inflation, Sweden’s Riksbank is unlikely to withdraw support until 2023.

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