All is well in Sweden
The inflation rate is right on target, GDP growth is close to the sustainable potential and the employment rate is at all time high. At the same time, the policy rate is the lowest since the Riksbank was started with a death sentenced eco-crime operation as a base 350 years ago. The low interest rate level also means that households' interest expenses in relation to income are at all time low.
Sweden is standing steadier than ever
The inflation rate is right on target, GDP growth is close to the sustainable potential and the employment rate is at
. At the same time, the policy rate is the lowest since the Riksbank was started with a death sentenced eco-crime operation as a base 350 years ago. The low interest rate level also means that households' interest expenses in relation to income are at
.
It is difficult to imagine a better situation for Sweden than the above. But we still take a look at the numbers in detail to see if I missed something.
Perfect inflation combined with continued stimulus
Inflation (CPIF) was 2.2% in December 2018, slightly above the level in November and the Riksbank's target of 2.0%. Admittedly, this means that the Riksbank is probably
trying to reintroduce a positive interest rate - but mostly for the sake of visibility. I guess, however, that it is received by the members, who nowadays seem to see positive interest as something outdated and outdated.