Inflation has this year ended up at six per cent, three times the Riksbank's target.
To fall below two percent by 2025, a forecast is now being submitted with two to three increases this year.
- Previously, we calculated that the inflation we saw was due to energy prices and that it would disappear.
But now we see that very many prices are rising and then we can not sit with our arms crossed and wait.
Then we must raise the interest rate, says Governor Stefan Ingves.
The Riksbank reckons that it will take "a few years" before inflation reaches their target of two per cent.
- Energy prices do not rise for very long.
And the adjustments in the world economy we are living with today, partly due to the pandemic, will eventually disappear.
According to Ingves, the fact that the interest rate is being raised to bring inflation down to the Riksbank's target is important for the vast majority of Swedes.
- It's good for everyone.
And usually those with the lowest incomes who suffer the most.
The Swedish economy works well if we reach our inflation target and it is to the benefit of the majority of the population.
Hear more of Stefan Ingve's reasoning in the clip above