“Sensitive moment for the Riksbank” – Dagens PS

Ireland’s former central bank governor warns the Swedish Riksbank and Stefan Ingves of reflexive reactions to the interest rate.

Inflation is rising and is at the highest level in decades, and the Swedish members of the Riksbank are flagging an earlier increase in the policy rate.

But Ireland’s former central bank governor Patrick Honohan warns against moving too fast.

“Reflexive reactions are probably a pretty big mistake,” he said at a news conference on Thursday. Swedish daily newspaper.

Patrick Honohan is stated together with Israel’s former central bank governor Karnit Flug have reviewed the Riksbank’s monetary policy 2015-2020 and in general the Riksbank receives good grades, it appears.

However, Karnit Flug believes that the interest rate increase from minus to zero for a few months before the corona crisis was unstrategic. Unemployment would have fallen more if it had not been, she tells SvD.

Also read: The Riksbank: Reasonable to raise interest rates earlier [Dagens PS]

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