Swedish Monetary Expansion Accelerates Further

Euro-zone money supply growth rose again to 8.2%, after having fallen from 8.5% to 7.8% the previous month.

But Euro-zone monetary conditions are still fairly sound compared to Sweden, where year over year money supply growth accelerated further, to a multi year high of 13.7%. This again illustrates that there is a far stronger cyclical element in growth in Sweden than in other countries and that the Riksbank will need to raise interest rates faster than elsewhere.