The uncertainty among the experts is palpable, but they agree that there are two choices: Either the Riksbank raises the interest rate to 4.25 percent or it stays at 4.0 percent.
The announcement comes at half past ten.
Prior to Thursday’s announcement, economists were unsure what the Riksbank would do. Some believe that inflation, which in October was 4.2 percent measured in the CPIF, is way too high, while others believe that the rising key interest rate has already bitten consumer enthusiasm, the labor market and companies and that it is time for a break.
The Riksbank raised the key interest rate from 0 percent to 4.0 percent between May 2022 and September 2023. It has hit house and apartment owners hard who have seen their housing loans become more and more expensive at a rapid pace.
The reason for the Riksbank’s rapid interest rate increases is inflation, which increased rapidly at the end of 2021 and during 2022. At its peak, inflation was 10.2 percent measured in CPIF – well above the Riksbank’s target of 2 percent.
Riksbank governor Erik Thedéen holds a press conference on the monetary policy decision at 11 a.m. Today the press conference is being held from Jönköping because the authority is testing its crisis preparedness and the ability to move operations from Stockholm.
The text is updated.