For transparency and my own agenda, we are not affected by today's policy rate increase and can handle another 50 basis points without a problem.
My prediction yesterday about the monetary policy statement by Riksbanken, our equivalent of the Federal Reserve, was correct.
However, I was wrong when I wrote in August 2019 that they would have no tools available in the event of future inflation.
They have resorted to the interest rate tool. Unfortunately, they use the tool as carelessly now as then.
The interest rate tool is not given any time to work, they said that they will to continue raise the policy rate throughout 2023 at today's press conference. Exactly as they did in 2019, but in reverse.
Although we are not personally affected by these interest rate increases, I am thinking mainly of all the young new families who have bought houses in recent years.
Even if they factored in future interest rate hikes, I don't think many anticipated how Europe would shut down its nuclear power plants and thereby create a massive inflation.
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