The policy rate is reduced by 0.25 percentage points.
But not everyone is happy about the Riksbank’s announcement.
– A larger reduction would have been better for the economy and for households’ squeezed budgets. Acting too late and lowering the interest rate too little can lead to deepening concerns, says Saco’s chief economist Håkan Regnér.
During Wednesday, it became clear that the Riksbank will lower the key interest rate by 0.25 percentage points – an expected announcement. The bank is also flagging for a double reduction this autumn.
Now critical voices are being raised against today’s announcement.
“A larger reduction would have been better for the economy and for households’ squeezed budgets.” writes Saco’s chief economist Håkan Regnér in a comment to TV4 Nyheterna.
Håkan Regnér also warns of the risks if the economic situation does not turn around.
“Acting too late and lowering the interest rate too little can lead to deepening concerns. The recession risks taking hold and unemployment continuing to rise. It must not happen.”
“Should have been a double dip”
Even Felicia Schön, private economist at Avanza, questions the announcement and believes that it should have been a double reduction.
“The feeling in the Riksbank’s communication is that they are tiptoeing around the market’s expectations instead of acting on the fact that everything points to the Swedish economy being properly strained,” she writes in a comment and continues:
“The light in today’s announcement is that the Riksbank is flagging for more interest rate cuts, but the arguments for why there won’t be big steps already today feel completely out of thin air – it was perfectly possible to raise at a fast pace without warning, then it goes without saying that can be lowered at a rapid pace without first having to signal that it is coming.”
Borrowing interest is reduced
Following today’s announcement, several major banks are lowering their mortgage rates. Both SEB and Swedbank are lowering the interest rate on mortgages with a three-month commitment period by 0.25 percentage points. Several banks have lowered mortgage rates ahead of the announcement.