The US central bank, the Federal Reserve (Fed), leaves the key interest rate unchanged.
The announcement was expected – but it is still too early to blow our breath.
– Everything depends on how inflation develops going forward, says Alexandra Stråberg, chief economist at Länsförsäkringar.
The US Fed announced on Wednesday evening that it is leaving the key interest rate unchanged in the range of 5.25 to 5.50 percent – the highest level in 22 years. Something that was expected according to Alexandra Stråberg, chief economist at Länsförsäkringar.
– But I still think that it should be interpreted as a somewhat hawkish pause. Several leaders have said that you may have to raise the interest rate later, says Alexandra Stråberg, chief economist at Länsförsäkringar.
– The danger is not over yet.
Sweden is expected to raise interest rates
It is above all the prevailing energy prices that have driven inflation globally. But in the US, the high pressure of the labor market has also increased wages – which is what is primarily driving inflation.
At the same time, the Swedish krona is clearly strengthening on the foreign exchange market ahead of all the interest rate announcements this week, where the Riksbank is expected to raise the key interest rate on Thursday morning.
– It is clear that Riksbank governor Erik Thedéen watches his colleagues both in the US and in Europe to see what they are doing. But of course he places much greater importance on inflation in Sweden and how it develops, says Alexandra Stråberg.
Inflation is on the way down but is still far from the target according to Stråberg, which is the reason why Sweden will probably raise the interest rate.
The next announcement from the Fed will come on November 1.