According to the Governor of the Riksbank Stefan Ingves, the minus interest rate that the Riksbank has for almost five years has done what it should. Therefore, it is the right decision to raise the interest rate to neutral 0 percent now, even though Sweden's economy is slowing down. But not everyone agrees.
- It looks like unemployment will rise, and weak inflation going forward. Then we think it is better to lie still, says Ylva Hedén Westerdahl.
"Unusual monetary policy"Although she does not think that 25 points is a big increase, she thinks it sends the wrong signals.
- Raising interest rates when other central banks lower, it feels like unusual monetary policy, says Hedén Westerdahl.
Christina Nyman, chief economist at Handelsbanken, is also critical of the interest rate hike.
- It becomes very unclear what you do and why and you need to be able to understand why the Riksbank changes its interest rate and what is the target, she says.
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"You need to be able to understand why the Riksbank is changing its interest rates and what is the target"