Both the European Central Bank (ECB) and the Federal Reserve (Fed) left their key interest rates unchanged recently. I hope Riksbanken does not rock the boat and leave the policy rate unchanged this time, although I highly doubt it.
Our current central bank governor, Erik Thedéen, will most likely push for a policy rate hike. The consequence will most likely be that Riksbanken will be forced to lower the policy rate as early as 2024 or 2025 at the latest.
I would not be surprised if Riksbanken is forced to introduce zero interest rates in 2025 as their monetary policy will rather deepen the ongoing recession instead of mitigating it.
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