At 9.30 this morning, the Swedish central bank, Riksbank, lowered the interest rate to 0%. Stefan Ingves, governor of the Swedish central bank, presented his new record-low interest rate from the Governor House in Stockholm. The interest rate was lowered to 0 percent from the previous 0.25 percent.
Sweden is often hailed as a socialist paradise, but obviously something is gravely wrong when 0% interest rates are required to keep the nation afloat. Not only are Swedes burdened with the highest taxes in the world, they are also drowning in personal debt, and they are facing an enormous housing bubble that is busting at the seams. Maybe Ingves’ zero-percent policy can kick the can a little further, but what comes after that?