That the Swedish central bank, Riksbanken, would raised its policy interest rate by 25 basis points yesterday was a no-brainer.
Although I personally believe that Riksbanken has failed in its mission for many years, I have to give them credit for being consistent. Yesterday's attempt to strengthen the Swedish krona was as toothless as the previous ones.
The most absurd thing yesterday was not the increase itself, but Riksbankens governor Erik Thedéen's statement in an interview. He said quote "You should continue to gain height because it could get worse" unquote.
Which literally means that Riksbanken intends to continue with its toothless increases instead of trying to find other approaches to strengthen the Swedish krona.
It must be amazing to think you're doing everything right even though the whole world is literally screaming that you're doing it wrong.
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