When you are completely out of touch with reality

The criticism of the Swedish central bank AKA Riksbanken is massive the day after the publication of their latest decision on the policy rate. The Swedish business community, Svensk Handel,  and the various trade unions make a common cause and agree with the criticism. Svensk Handel's, chief economist Maria Mikkonen warns of quotes "Companies and jobs are at stake." unquote. While the trade union Landsorganisationen (LO's) chief economist Torbjorn Hallo says quote "an excessively high policy rate has damaged the country's economic growth" unquote.

Although yesterday Riksbanken opened for three further policy rate cuts later in the year, they are completely meaningless as long as they are not implemented. Riksbanken's track record is not spotless. For example, Riksbanken announced its then interest rate path on 26 April 2023 and stated that the policy rate will peak at an average of 3.7 percent in 2024 and then drop slightly to 3.6 percent in 2025. Which did not match reality at all. Already on 27 September 2023, Riksbanken had raised the policy rate to 4 percent.

Empty vessels make the most noise.