Sweden: Riksbank to increase policy rate by half a percentage point

NordenBladet — Reuters has predicted that Riksbank in Sweden, the country’s central bank, is very likely to hike its policy rate by half a percentage point this week, possibly tomorrow. According to economists, an unanimous decision was made in predicting a hike of to 3.0% during tomorrow’s Thursday’s policy meeting; an inflation at a 30-year high. It is then predicted that one more increase in April is going to occur before 2024 sees rates starting to fall.

During 2023, the country’s economy is expected to shrink, and due to a high number of floating-rate mortgages, meaning interest rates in Sweden are expected to have quicker and bigger impact compared to the rest of Europe.

In 2022, house prices in Sweden dropped to about 15% due to the hikes by the country’s Riksbank.

Source: Reuters.com