11.24.2023

I was wrong

Sweden's Central Bank AKA Riksbanken chose not to raise the key interest rate. It remains at 4% but, according to central bank governor Erik Thedéen, may be increased in the future.

However, many experts believe that Sweden has reached the end of the increase and predict that Riksbanken will instead lower the policy rate in 2024. Riksbanken themselves say that a reduction in the key interest rate will come in the second half of 2025 at the earliest.

Nevertheless, what Riksbanken says should be treated with caution since the previous central bank governor, Stefan Ingves, said as late as April 2021 quote "Riksbanken estimates that the key interest rate will remain at 0% until 2024" unquote.

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