Riksbanken needs to man up

For transparency and my own agenda, we have mortgages. Me and the world's most perfect husband have always considered that a policy rate below 2% is neither right nor healthy for a country. We have always lived as if the mortgage interest rate should be at least 4% and the difference between 4% and the real interest rate we have invested in stocks. Therefore, the interest rate increases of recent years have not affected our disposable income.

The fact that inflation for June was 1.3%, which is 0.7% below the inflation target of 2%, means that experts and economists claim that Sweden's central bank AKA Riksbanken should make a double reduction at the monetary policy statement in August, i.e. 50 points. If inflation for July also ends up below the inflation target, criticism and demands on Riksbanken will increase.

Personally, I think they held off on a cut at the June 26, 2024 monetary policy meeting to get access to two months of results before they need to make a decision. That way, they have both belt-and-braces.

As is traditional, Riksbanken reacts instead of act.