Equity analyst Peter Malmqvist has described the Riksbank’s policy as “alarming”. He does not believe in negative interest rates as a means of bringing up inflation to target; all it does is to build bubbles in the economy.
“I am against the policy that has been pursued in the past few years. Property prices are rising, there are no homes, and the stock market is going up. All curves in Sweden are pointing upwards right now, apart from the interest rate,” he says, and suggests that the consequences could be grave when inflation starts picking up and the bubbles burst.