IRAN: "BAHRAIN SAYS IT HAS INTERCEPTED AND DESTROYED A NUMBER OF IRANIAN [...]

UK PM Starmer once again stresses that he will fight against any attempt to oust him as Labour Party leader/Primer Minister, although he does note that he wants Andy Burnham to play a part in government.

Highlights from the policy statement: 

• “Inflation in Sweden is low and economic activity is somewhat weaker than normal. At the same time, the supply disruptions linked to the war in the Middle East have led to inflationary pressures rising and the risks of inflation becoming too high have increased.”
• “The probability that the rate will be raised later this year has increased in relation to the assessment in March.”
• “The supply disruptions have now lasted for almost four months and the longer they continue, the greater the risk to inflation effects, and they may be reinforced by changes in pricing behaviour.”
• “The supply disruptions caused by the war in the Middle East are dampening economic developments somewhat, but, in the forecast, growth is expected to be higher this year than last year and economic activity will strengthen.”
• “The range of potential outcomes for what can happen going forward is wide and the Riksbank is highly prepared to adjust monetary policy”

Updated rate path: Revised up by up to 8bps in Q1/Q2 2027

• RIKSBANK: PROBABILITY OF HIKE THIS YEAR INCREASED