• Sweden edition
 

Riksbank interest rate hikes 'in doubt': experts

Published: 09 Aug 2011 11:57 GMT+02:00
Updated: 09 Aug 2011 11:57 GMT+02:00

Annika Winsth, chief economist at Nordea, is among those expecting the Riksbank to hold rates at the current level.

"If the mood is the same when they enter the meeting, then we don't believe they will raise rates. At the moment the market is very negative, more or less free-fall," Winsth said.

She added that the development is so dramatic that it is impossible to predict how the situation will be in September and what the Riksbank's decision will be.

Swedbank meanwhile has retained its forecast that the Riksbank will raise interest rates again this year, but recognised that the current market turmoil increases uncertainty over the bank's plans.

"We have an increase in September in our official forecast, but it is clear that there is a downside risk to it in the current situation," said Martin Tallroth, interest rate strategist at Swedbank.

Tallroth added that it is "entirely possible" that the Riksbank would leave rates unchanged for the remainder of 2011.

"Absolutely, it is entirely possible. But our official forecast is for an increase for this year," he said.

Riksbank's interest rate forecast, published on July 5th, indicating a further two rate hikes of 0.25 percentage points each, to 2.5 percent by the end of the year.

The Stockholm stock exchange oscillated wildly on Tuesday in a second day of market turbulence. After initial falls in the OMXS index of as much as -4.3 percent, the market rebounded to around -0.8 percent by lunchtime.

TT/The Local/pvs (news@thelocal.se)

Don't miss...X
Left Right

Your comments about this article

13:12 August 9, 2011 by Mib
Raise the interest rate. It's a blip in reaction to indecisive politicians. When they have been shown the way by the market, they will do what is necessary. Germany/EU has to guarantee all debts within the EU......otherwise no-one will have confidence to lend at reasonable rates to the weaker EU members. Their tentative steps to lend some money to Italy ect at reasonable rates has not convinced the market and the fact that they will not guarantee the debts themselves makes the investors question....if it isn't good enough for them, then it's not good enough for us, unless the countries want to pay exhorbitant interest!

So....raise the rates and then if the mayhem continues ie. proven to have made a siginifcant effect on Sweden's growth, then freeze or reduce rates. Sweden is doing well and raising rates will keep the economy at the right balance. People seem convinced that the housing market is in a bubble (I disagree), so another reason to keep a lid on things.
13:55 August 9, 2011 by just a question
It seems the ship is sinking. It's going to sink anyway thanks to this economy made by idiots for selfish idiots who borrow money and pretend they are rich. Even the solutions are idiot: give more public money to the banks that have ruined our economy. The world can't stand more idiots.
14:26 August 9, 2011 by AlexCN4
Idiots...destroy what is good and nice for what? what the hell happened with those politicians, minister etc...they think that will come a miracle and will disappair the crissis...no way, the world already is messed up and will be worse in the next time. The future no sound well.
10:50 August 11, 2011 by Molnboman
No sh*t Sherlock!

The global economy is in freefall and Sweden thinks the garden is rosey!...Wakey Wakey!

Yes, economy is stronger than most.....however, now we have French debts are exposed....who is next?....meatime, Saab will fold soon......Thousands of people will be affected.....who is going to pay for that?

Nevermind.....we are fine....let's raise the interst rate!....Fail!
11:12 August 12, 2011 by rumple123k
Maybe they should concentrate on getting the Kr to its proper value, as it is currently at least 30% overvalued. Which is a serious hamper to exports, perhaps the only sensible way SAAB can go on. Ericsson reporting losses too due to a fall in demand, though I suppose it could be coincidence that the kr used to 14 : 1 against the pound and is now 10:1!!! Seen as there isn't a huge amount of reliance on imports, and in areas where there is a change in the rate of mom's could alleviate the effects, there wouldn't be a substantial hit for the Swedish consumer by the Kr returning to its true value.
10:34 August 15, 2011 by Molnboman
You are right about the strength of the Krona...I too remember when you got 14 Seks to the £ in 2006....mind you the UK economy is in a hell of a state now....and if you were gambling between the two, you tend to run towards the Krona right now and they keep pushing how strong their economy is...with respect to Ericsson....isn't their position more to do with their phones being unfavoured rather than a strong Krona?

SAAB to survive need to have a broader car range including a small Astra / Focus size....but it's a chicken and egg dilemma...unless their flog their overpriced new 95 ranges they won't get the loot to develop smaller cars and thus, there's yer dilemma!.....What about a price reduction on all SAABS to Swedish residents? hahaha Oh no, that would be anti European!
Today's headlines
Swedes insist EU prioritize environment

Swedes insist EU prioritize environment

An EU public opinion poll released on Friday revealed that Sweden is the only nation which thinks the environment should be a top priority for the union. READ  

Police turn blind eye to Swedish 'slave trade'
File photo: TT

Police turn blind eye to Swedish 'slave trade'

Police in Gothenburg have confirmed that sex trafficking in the city has developed into a full-blown slave trade - but that they lack the resources to do anything about it. READ  

Pirate Bay inmate claims religious persecution
Photo: TT/The Missionary Church of Kopimism

Pirate Bay inmate claims religious persecution

Peter Sunde has complained that his religious rights have been impinged after he was refused permission to meet a representative of a church inspired by the keyboard shortcuts for cut and paste. READ  

Stockholm 'bomb man' jailed and deported
Police at the scene of the threat in June. Photo: Bertil Ericson/TT

Stockholm 'bomb man' jailed and deported

The 43-year-old man who threatened Stockholm's Gamla Stan with a bomb in June was sentenced on Friday to two years in jail, followed by deportation. READ  

Swedish police: 'We're sweaty all the time'
Swedish cops are unhappy with the heat. Photo: Håkan Dahlström/Flickr

Swedish police: 'We're sweaty all the time'

Swedish weather agencies say the summer's warmest day is yet to come, but police in the north have decided that they can't take the heat - and filed a report about the own stifling police station. READ  

SAS resumes flights from Stockholm to Tel Aviv
File photo: Johan Nilsson/TT

SAS resumes flights from Stockholm to Tel Aviv

SAS Scandinavian Airlines has resumed flights from Stockholm to Tel Aviv after the airline completed a 'thorough security analysis' of the situation in Israel. READ  

Swedish man stabs woman and kills himself
A Stockholm police car. File photo: TT

Swedish man stabs woman and kills himself

A man and a woman, reported to be both 45-years-old, were found dead on Thursday in an apartment on Lidingö in Stockholm with police suspecting a murder and suicide. READ  

Police fear arson after Sweden mosque fire
Central Norrköping in eastern Sweden. Photo: Stefan Vilcans

Police fear arson after Sweden mosque fire

Swedish police suspect arson after buildings at a mosque in Norrköping in eastern Sweden burned down in the early hours of Friday morning. READ  

Opinion
'Moving wasn't a choice, Sweden called to me'

'Moving wasn't a choice, Sweden called to me'

Caught in an identity limbo and surrounded by often apathetic "love refugees", The Local's resident Swedophile Solveig Rundquist wonders if she's the only expat who moved to Sweden for the culture alone. READ  

Swedish inmates to receive digital tablets
Photo: Hasse Holmberg/TT

Swedish inmates to receive digital tablets

Sweden's Prison and Probation Services are beginning a project in which suspected criminals will be given surf tablets to look at evidence against them. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Gallery
Top ten Swedish taboos
Society
Seven-year-old Swede cycles to Berlin
Politics
'Gaza conflict needs help, not empty rhetoric'
Society
Swedes voted 'most beautiful' in the Nordics
Business & Money
Sweden demands EU clarity on Bitcoin tax
Blog updates

24 July

Sharing our Pride: Celebrating Love & the LGBT Community! (Stockholm in my American Heart) »

"It’s mid- July in Stockholm, and with much of the city on vacation, things can seem a little quiet – the streets, the bus, and the grocery store. One thing that has not paused for a summer break, though, is preparation for Stockholm’s Pride Festival, which will take place from July 28 to August 2...." READ »

 

22 July

Det (The Swedish Teacher) »

"Hej! “Det” is a personal pronoun that can be used in many ways, and it might me confusing if you always translate “det” to English “it”. In this article I will do my best to guide you to how to use “det”. Det replacing a word, a phrase or a clause Let us begin with the less confusing..." READ »

 
 
 
National
Swedish organic sales enjoy 'amazing' growth
Photo: Johan Nilsson/TT
Society
What's On in Sweden
Gallery
People-watching July 23
National
Swedish cops elect not to shoot 'angry elks'
Business & Money
New alcohol retail rules threaten micro-breweries
Gallery
People-watching Båstad
Business & Money
Sweden falls to third in global innovation index
Society
Swedish ornithologists keep webcam watch
Photo: Andreas Nordström/Image Bank Sweden
Gallery
Top ten Swedish beach hot spots
Tech
Swedish Wiki vet sets new content record
Photo: Fastighetsbyrån
Lifestyle
In Pictures: The Local's Property of the Week
Photo: Finest.se
Gallery
People-watching July 15-16
Photo: Ola Ericson/Image Bank Sweden
Society
What's On in Sweden
Photo: Lisa Mikulski
National
Hope springs eternal for expat pet shop owner
Gallery
Princess Estelle steals limelight at mum's birthday
National
Swedes risk infants' lives by covering up prams
National
Swede runs for office just using Bitcoin funds
Gallery
People-watching July 11-13
Sponsored Article
Introducing... Your finances in Stockholm
Sponsored Article
Introducing... Housing in Stockholm
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

746
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
AA-EUROPE.ORG/SWEDEN
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se