The Riksbank has topped transparency studies for almost a decade. Now, Scandinavia’s biggest bank is faulting policy makers for confusing markets.
As Sweden’s households continue to add to their record debt burdens, the central bank and the financial regulator are marking out their territories.
Jenny Segerstedt learned about the downside of Sweden’s soaring real-estate market the hard way.
Sweden’s manufacturing unexpectedly shrank in August at the fastest pace since May 2009 as the krona’s appreciation sent export orders plunging amid sagging demand from debt-stricken Europe.
The Riksbank, the world’s oldest central bank, has become a sadist in its use of monetary policy, according to Nobel Laureate Paul Krugman.
Economists following the Swedish central bank are once again having a hard time figuring out what its policy makers are planning.
Sweden’s central bank will probably cut its benchmark interest rate this week to keep the largest Nordic economy from sliding into a recession as Europe’s debt crisis buffets exports.
Swedish yields on benchmark 10-year debt jumped the most in the European Union today after a string of indicators underpinned the view that the Riksbank will stick to its monetary tightening plans.
Sweden is looking into the option of forcing households to start amortizing their mortgages in an effort to prevent debt loads rising from a record.
"The risk of surprise would have become much smaller if they had been free to express their views in between meetings."
- Roger Josefsson on Oct 14, 2013