🎼 That don't impress 🎼 me much 🎼

At the same time as Riksbanken presented its policy interest rate statement last week, they also presented their forecast for housing prices up to and including 2026.

According to Riksbanken's forecast, house prices will fall a further 5% during the year to stand still until 2026, which is the end date of the forecast interval.

Riksbanken's forecast for the policy interest rate during the same forecast interval shows a range between -0.39% to +7%. According to Riksbanken, it is 90% likely that the policy interest rate will be within the range until 2026, also the end date of the forecast range.

If you look at the spread in their forecast for the policy interest rate, it becomes painfully clear that Riksbanken has no idea how they will act in the future.

It doesn't really feel as if Riksbanken has managed to tie itself to Sweden's absolute cutting-edge expertise. There is much to be desired there.

It will be a feat in itself if they manage to miss their own forecast with that spread…