“Economic growth in Sweden and abroad remains strong. Over the next few years, the economic upswing is expected to continue, but at a slower pace,” the bank’s report said.
Inflation has risen during the past year to 1.6 percent in May. The increase is due partly because of rising energy prices. Domestic inflation is expected to rise relatively quickly in the future as economic activity improves.
The report said interest rates in Sweden will likely rise over the coming year above recent market expectations