Alexander Norén on the US interest rate announcement: "Puts pressure on the Swedish Riksbank"

Due to rising inflation, the US Federal Reserve raises the key interest rate by 75 basis points, for the third time in a row.

According to Alexander Norén, the triple increase was expected.

- It's like a race to the top where nobody wants to be left behind when it comes to interest rate increases.

Nobody wants a currency that is too weak because then it becomes more expensive to import, he says.

Puts pressure on the Riksbank

The dollar stands strong against the krona and the euro.

One dollar now costs SEK 11.08, which is historically expensive.

In order to avoid rampant inflation, it is likely that the Riksbank will proceed with more increases in the future.

- The announcement naturally puts pressure on the Swedish Riksbank to go ahead with interest rate increases going forward.

It's a bit like following John, but instead you follow the Fed in the fight against inflation.

Hear Alexander Norén's analysis of the interest rate announcement in the video above.