Secondary out was the Swedish central bank AKA Riksbanken which lowered the Swedish policy rate by 50 points, which was completely in line with expectations. This was the biggest change in more than 10 years. Erik Thedéen, governor of Riksbanken, who always warns of uncertain times, specified this time that the various tariffs that the newly elected US president promised to introduce on products manufactured outside America during his election campaign could lead to increased inflation.
However, the problem that arises when you have shouted "Wolf!" at every previous press conference and used every superlative in the dictionary is that it becomes harder to get your message across when it really matters.
Finally, it was time for the American equivalent of the Swedish central bank, the Federal Reserve, and its chairman Jerome Powell to also fulfill the set expectations and lower the US policy rate by 25 points. In addition to Riksbanken and FED, the Bank of England also lowered its policy rate by 25 points yesterday, from 4.75% to 5%.
Countries all over the world have been struggling with rising inflation and more countries aside from the US and Sweden are starting to see results. That the world would have to fight against unusually high inflation after the pandemic was already clear in 2020. In addition to the fight against inflation, many countries, including Sweden, are still suffering from shortages of certain products as a result of the pandemic when China completely shut down their country. I really hope that all the companies that said they intend to move their operations either home or to other countries fulfill on their promises.
AI generated image with Grok
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