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Fed Cut Not Expected to Affect Sweden

Published onsdag 19 september 2007 kl 13.10

Quick to assess possible after shocks from Tuesday’s interest rate cut in the U.S., Swedish experts are downplaying any effect on this country.

The half a percentage point cut by the U.S. Federal Reserve on its key interest rate was a larger slash than expected but Swedish Radio News reports that experts here do not believe the Riksbank, the Fed’s Swedish counterpart, will follow suit.

Swedbank’s Hubert Fromlet says Sweden’s economy is enjoying a period of strong growth. He points out that many are talking about the risk of overheating in respect to fast-rising home prices, shop-happy households and a work force shortage in some sectors.

Our journalism is based on credibility and impartiality. Swedish Radio is independent and not affiliated to any political, religious, financial, public or private interests.
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