The Riksbank lowers the interest rate – weak Swedish economy behind the decision
The decision to lower the interest rate is fully in line with the vast majority of forecasters, who believed in the interest rate reduction by 0.25 percentage points to 2 percent.
This is good news for mortgage borrowers with large costs, but it also means that the Swedish economy does not develop as expected – the reduction of interest rates is justified by the fact that the cyclical recovery loses momentum.
The Riksbank also points on international economic uncertainty with customs policy, but not least on the feared effects of the growing conflict in the Middle East, which can hit energy costs.
« There are good conditions for a stronger Swedish business cycle in the future, partly as a result of rising real wages for households. But recovery is going slower than expected. New information shows that growth in the Swedish economy is weak, while unemployment remains high. The great uncertainty is also expected to inhibit the recovery in the near future. » writes the Riksbank.
It is also opened for further reduction this year: « The forecast for the policy rate means a certain probability of another reduction this year. » writes the bank in a press release.
Felicia Schön, private economist at Avanzawelcomes the message, and hope it can accelerate the economy.
« We are out on the other side of the interest rate top and there are good reasons to dare to breathe out. For the truth, the Swedish economy is currently slowed down by both companies and private individuals awaiting the tangible uncertainty that has come with recent world events, » she writes in a comment.
Real estate agents hope On better press on boom market:
« Today’s message about reduced interest rates and adjusted forecast can give a certain stimulation to a sluggish housing market, which is welcome. Many factors in a turbulent world create uncertainty and awaiting many housing consumers, » writes Ulrica Hedman, CEO of the Real Estate Agency, in a comment.
Read more:
So much cheaper will be your mortgage – check with DN’s calculator
