Economy

 

Matterhorn and Table Mountain. TT 

 

Swedish inflation 

Analysis: Table Mountain in sight - but risk for the Matterhorn  

 

A new analogy for monetary policy has taken hold, where more and more people say that the choice is between the wide and flat Table Mountain or the pointed and steep Matterhorn. That's what Bloomberg's John Authers writes in an analysis.  

 

In the Matterhorn scenario, central banks quickly raise interest rates to a high level, only to initiate steep interest rate cuts shortly thereafter. In the Table Mountain scenario, interest rates are raised to a slightly lower level, but instead the interest rate peak becomes more prolonged.  

 

Authers thinks it's a great analogy, pointing out that mountain climbers often warn that it's the way down that's the most dangerous part. "That's when accidents happen. The same applies to monetary policy," he writes. 

 

According to Authers, the Riksbank's dovish interest rate path indicates that we may now have reached the top of Table Mountain. 

 

But if a financial crisis or recession occurs, interest rates need to come down quickly. 

 

Suzuki Garphytta Press photo  

 

Swedish vehicle supplier warns - blames Europe  

 

Last week, Suzuki Garphyttan announced that they are giving notice to 68 of the 230 employees who work at the factory in Örebro municipality, writes Dagens Industri and refers to local media. The explanation must be a weak order intake from Europe. 

 

- We have tried to wait for a turnaround, says Henrik Pettersson, site manager at the factory in Garphyttan, to DI. 

 

Normally, according to Petterson, they have order books for two months ahead. That there will be an increase next year is more "than hope [...] than realistic", he says.  

 

JUNG YEON-JE / AFP  

 

Economy Property speculation for billions in South Korea  

 

In the past five years, 30 people have bought 8,000 homes in South Korea, despite the government's efforts to reduce speculation in the real estate market.  

 

According to opposition politician Min Hong-chul, the people have bought homes for 1,200 billion won, around 10 billion kroner, and thus driven up house prices, writes Bloomberg.  

 

Since 2018, housing prices in the country have surged 37 percent, largely after individuals speculated in the market. In 2021, the capital gains tax for owners of multiple homes was raised to 75 percent from the previous 40 percent.

Dieselpriset höjs kraftigt efter ryska exportförbudet

Janerik Henriksson/TT  

Diesel prices are rising sharply after the Russian export ban  

The fuel chains are raising prices sharply after yesterday's announcement that Russia is temporarily throttling its diesel and gasoline exports, TT reports.  

The price of a liter of diesel is increased by 45 öre to 26.31 kroner, which is the highest level this year. A liter of 95-octane petrol is adjusted up by 15 öre to SEK 21.59.  

Russia stated yesterday that the purpose of the export ban is to curb domestic fuel price increases. 

 - Although this is only a temporary ban, the impact is large, as Russia is a key exporter of diesel to global markets, Alan Gelder of Wood Mackenzie told Bloomberg.