After Norges Bank left rates unchanged last week but shifted its rate trajectory lower by around 35bps across the forecast horizon, focus now shifts towards neighbouring Sweden, where the Riksbank next week (July 3rd) will decide on policy in an economy growing at a pace sufficient to create jobs, but not strong enough to generate higher price pressures. There is a word for this in Swedish, ‘lagom’, which has no direct English equivalent but according to Wikipedia would translate into something like “just the right amount”, i.e. a kind of a Swedish “Goldilocks”.
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