Sweden's Riksbank Lifts Policy Rate to 0.75%

Sweden's Riksbank Lifts Policy Rate to 0.75%

Assessment

Interactive Video

Business

University

Hard

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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.

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5 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What is the expected terminal rate mentioned in the text?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

How much is the Riksbank expected to shrink their assets in the second half?

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3.

OPEN ENDED QUESTION

3 mins • 1 pt

What impact did the interest rate hike have on the currency mentioned?

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4.

OPEN ENDED QUESTION

3 mins • 1 pt

What does Jesper Peterson from Danske Bank say about the expected hike?

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5.

OPEN ENDED QUESTION

3 mins • 1 pt

What are the concerns regarding the housing market in Sweden?

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