Criticism of Riksbank's Timing on Interest Rate Cuts Intensifies
Experts argue that the Riksbank's delay in lowering interest rates in 2024 was a misstep.
Key Points
- • Experts critique Riksbank's delayed interest rate cuts in 2024.
- • Inflation was near target levels, warranting earlier action.
- • Researcher suggests moving autumn cuts to June.
- • Riksbank Governor defends proactive timing and future strategies.
Recent discussions surrounding the Riksbank's handling of interest rate cuts in 2024 have led to significant expert criticism. An annual review revealed that many experts believe the central bank should have acted sooner to lower rates. The report, presented to the finance committee, indicates that after an initial cut in May 2024, the Riksbank made a miscalculation by pausing for too long. According to researcher Karin Kinnerud from Handelshögskolan BI in Oslo, inflation levels were approaching target rates, and resource utilization showed weakness, which justified earlier actions. Kinnerud suggested that one of the rate cuts planned for autumn could have been moved to June.