Against the backdrop of a red-hot housing market, the Riksbank might draw inspiration from the Swedish football team, which embodied one of the ideals of central banking in its opening Euro 2020 game by doing very little but still getting a result. We expect macroprudential policies to be tightened sooner rather than later, but it is not inconceivable that monetary policymakers follow Norway with a tightening cycle of their own at some point. The main thing to watch next week is a no confidence vote in Sweden on Monday, which seems likely to pass. While the short-term macro implications would be limited, it could exacerbate the near-term pressure on the Swedish krona.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services