It was not in this situation that the Riksbank would be in. The repo rate, the Riksbank's most important policy rate, would be raised to a normal level at a leisurely pace for several years, while the economic boom would continue. The politicians would be able to get hold of the housing bubble and debt.
Then comes reality and interferes. It is a messy, unpredictable environment with Brexit chaos, US-China trade war, concern for Italian banks and the German economy. At home, the record economy is starting to show signs of slowing down.
In spite of all this, the Riksbank wants to maintain an increase in interest rates at the end of the year or early next year. Being forced to lower in the near future is not in the main scenario. After that, interest rate hikes will then take place at a much slower pace than previously forecast.
"Braces on"
At a time when both the European Central Bank, the ECB, and the US Central Bank, the Federal Reserve, signal that they are prepared to lower their interest rates further by various means and the Riksbank previously closely followed their assessments, the Deputy Governor Per Jansson calls the Executive Board's decision "dared".
Unlike many other analysts, the Riksbank looks bright on the economy in the near future. But it would not be the Riksbank if they put their braces on and say that they can at least change their judgment.
The reaction to the Riksbank's unusually bright view of the near future was met and a rise in December was met with a breath of relief. The krona is strengthened and the interest rate on government securities will rise slightly.
It is only to be noted - we are living in a strange time.