11.20.2023

I hope I'm wrong

On Thursday, Sweden's central bank AKA Riksbanken will deliver the next monetary policy announcement.

It is just as uncertain that they will leave the policy rate unchanged as that they will raise it, if what is written is to be believed.

Personally, I think that the governor of the central bank, Erik Thedéen, will raise the key interest rate by 25 basis points. Even if it's completely the wrong way to go. I base this on the fact that he previously said that another interest rate increase is to be expected and he does not want to appear incompetent and weak.

What speaks against an increase is that more and more people seem to believe that both the Federal Reserve (FED) and the European Central Bank (ECB) will not raise interest rates again. In addition, the inflation outcome was lower than expected in Europe, the USA and Sweden.

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