Sweden's Riksbank Lifts Policy Rate to 0.75%

The video discusses the Riksbank's decision to increase policy rates, aiming for a terminal rate slightly above 2% by next year. This move is seen as a more aggressive policy stance, with plans to shrink assets faster than previously announced. The immediate reaction in the currency market shows a temporary strengthening of the Swedish krona. However, concerns about imported inflation and the fragile housing market persist. The video concludes with expectations that the currency's strength may not last, as the rate hike was in line with expectations.

What is the expected rate by the start of next year according to economists?

• 4%

• 3%

• 2%

• 1%

What action did the Riksbank decide to take regarding their assets?

• Double their assets

• Maintain their assets

• Increase their assets

• Shrink their assets

How did the Swedish krona react to the Riksbank's announcement?

• It collapsed

• It weakened against the euro

• It remained stable

• It strengthened against the euro

What is a concern related to the krona's temporary strengthening?

• Increased exports

• Lower interest rates

• Imported inflation

• Higher employment

What potential impact could aggressive interest rate hikes have on Sweden's economy?

• Strengthen the housing market

• Increase foreign investment

• Hurt the housing market

• Boost the stock market