On Tuesday, the Riksbank lowered the key interest rate to 3.5 percent while flagging three more cuts this year. This since inflation has fallen and is now below the two percent target.
– Our forecasts have come true. We feel more secure that inflation is now in line with the target and that it will continue to be in line with the target, says Riksbank governor Erik Thedéen who, despite this, warns that the situation can change quickly.
– It can be about geopolitics, oil prices, gas prices, about how companies act when the economy picks up speed.
LO: Strikes against the jobs
But LO’s chief economist Torbjörn Hållö is critical and believes that the interest rate has hit the Swedish labor market unnecessarily hard. He wants the Riksbank to lower the interest rate even more – and quickly.
– The Riksbank should have an interest rate that is significantly below the European interest rate. Currently, only 0.25 percent differ. We must have a lower interest rate because we have a completely different financial structure.
Hear the parties’ arguments in the clip above. You can watch the entire program SVT Play.