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POLITICS

Swedish prime minister calls reaction to war warnings ‘exaggerated’

Swedish alarm after defence chiefs warned of the prospect of war is an overreaction, said Prime Minister Ulf Kristersson.

Swedish prime minister calls reaction to war warnings 'exaggerated'
Swedish Prime Minister Ulf Kristersson spoke at the annual Folk och Försvar defence conference last week. Photo: Pontus Lundahl/TT

Swedish ministers and military officials sparked a stir the other week when they, in speeches at an annual defence conference, warned of the theoretical prospect of war, urging Swedes to “prepare”.

Prime Minister Ulf Kristersson in his own speech urged people to consider “the expectations that come with Swedish citizenship”, ultimately “defending Sweden” with “our lives on the line”.

Children’s charity Bris reported an increased number of calls from concerned children following the statements, and shops noted an uptick in sales of kit such as emergency radios and water jugs. 

But in an interview with public radio broadcaster SR’s morning show on Tuesday, Kristersson, leader of the conservative Moderate Party, said he was not worried about the threat of imminent war.

“I’m not worried, but we are preparing. There’s nothing that suggests that war is on our doorstep right now, but it’s perfectly obvious that the risk of war in our part of the world has increased significantly,” he said, highlighting Russia’s full-scale invasion of Ukraine as an example.

Kristersson said that he found the reactions to the government’s and armed forces’ warnings of war “exaggerated”, adding that it felt like “you can’t mention several different nuances at the same time”.

“There is no ambition to scare or cause anxiety in any way,” he said.

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ECONOMY

Swedish inflation drops below 4 percent for first time in two years

Sweden's consumer price index fell to 3.9 percent in February, reinforcing predictions that the central bank will keep lowering interest rates this year.

Swedish inflation drops below 4 percent for first time in two years

The yearly inflation rate according to the consumer price index (CPI) was down from 4.1 percent in January, according to number crunchers Statistics Sweden.

Experts had predicted an inflation rate of 4.0 percent, according to Bloomberg.

“The effect of increasing interest rates for household’s mortgages is easing, which can explain the decreasing inflation rate in April,” Statistics Sweden analyst Carl Mårtensson said in a statement.

Inflation measured instead according to the CPIF metric – the consumer price index with interest rate fluctuations taken out of the equation – meanwhile rose slightly from 2.2 to 2.3 percent.

However, that still beats expectations, which had predicted CPIF inflation of 2.4 percent.

YOUR SWEDISH MONEY:

That puts it slightly above the Riksbank’s inflation target of two percent, and experts predicted that Wednesday’s inflation news strengthened the likelihood that the bank will cut interest rates further.

The Riksbank last week slashed Sweden’s so-called policy rate for the first time in eight years.

The policy rate is the central bank’s main monetary policy tool. It decides which rates Swedish banks can deposit in and borrow money from the Riksbank, which in turn affects the banks’ own interest rates on savings, loans and mortgages.

If bank interest rates are high, it’s expensive to borrow money, which means people spend less and as a result inflation drops.

But now that inflation appears to be holding relatively steady around the two percent target, it means that the bank might be able to start lowering the policy rate yet again.

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