Will Central Bank Reverse Course?

Economists at one of Sweden’s largest banks are predicting lower interest rates here next year.

The report from the SEB bank says the international credit crisis is affecting the global economy. The bank believes the Swedish economy will remain strong for a while longer, but forecasts a drop in growth and increased unemployment in 2008.

The Swedish Central Bank, Riksbanken, has been bucking the international trend by raising interest rates here. The SEB economists say Riksbanken will have to reverse course.