the Us Fed has already swung. Similarly, the euro area for the ECB. Earlier in the week it was Canada's central bank turned down their ränteplaner.
Last out was the Riksbank, whose announcement on Thursday was trendriktigt. No one had expected anything other than that interest rates would remain at minus 0.25%. That this autumn's planned rate hike was postponed was also reasonable. The extended obligationsköpen was a logical consequence.
that the Riksbank reacted unexpectedly predictable. The decision was natural, given that inflation during the first months of the year have been unexpectedly low. The currency markets were still on the bed of the message. Immediately after the announcement plunged the crown. At a stroke became the euro and the dollar around 15 penny more expensive.
One problem is that it has floated a uncertainty about the Riksbank. How much would it come from minusräntan? See the heads an intrinsic value in getting up to zero? When the interest rate was raised in december was a hint about it.
But when the head Stefan Ingves get straight questions, he says no. The riksbank has an inflation target. No other beacon controls.
The message seems to not really reach. Perhaps it is the small things in the word. The riksbank talking, for example, to gradually ”normalize” monetary policy, thus raising interest rates. Such language suggests a willingness. Normally is a good thing? Why should we not aim at it?
the challenge is that of the crown. The weakening – around 10% of the value of two years – is meeting with criticism. Stefan Ingves answer is that Sweden has chosen a floating exchange rate. ”We'll have to live with the fact that the krona can fluctuate,” he said on Thursday.
the only Problem is that the Riksbank a few years ago talked about to actively weaken the krona, partly in contradiction with the decision to have a floating exchange rate. It remember many.
the Pedagogy is lame. It is the Riksbank itself, which created paradoxes.
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