9.17.2024

I wish they would grow a pair

Tomorrow, the Federal Reserve (FED) will announce whether they intend to cut the policy rate this time. The market expects a decrease of 25 points. As a non-US resident, it's harder to feel the currents in society without boots on the ground, so I agree with market expectations and assume the FED will cut the policy rate by 25 points.

On Thursday next week, Sweden's central bank AKA Riksbanken will publish its latest decision on the Swedish key interest rate. As a Swedish resident, this decision is much easier to predict. Even if it is a malptractice by Riksbanken NOT to make a double reduction, 50 points, I am convinced that Riksbanken and its head Erik Thedéen are far too spineless as usual to dare to take such a measure. However, it is set in stone that Riksbanken will make a 25 basis point cut next week, especially given the latest inflation report on 12 September.

Unfortunately, I think last month's and this month's upcoming drop will come too late to affect any of the notices currently in place. In my opinion, almost all notices will probably be executed and the biggest reason for that is that Riksbanken has reacted far too late again.

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