The Riksbank's warning to the new government: Unfunded election promises can result in higher interest

Earlier this week, Riksbank Governor Erik Thedéen warned that the interest rate will probably be raised twice in the coming year. But the forecast assumes that the incoming government pursues a stricter fiscal policy line than the outgoing one.

If election promises are implemented without funding, there will be consequences. That leads to higher inflation, which will require interest rate hikes.

- If you want to do these different measures that have been presented in the election from different parties. Then you have to finance them to a large extent, otherwise that equation doesn't add up, says Erik Thedéen in Ekot's Saturday interview.

Thedéen is asked whether it should be interpreted as a warning to the incoming government.

- It is not really a warning to politicians. It's just information about how the system is rigged and it's a system that the politicians themselves have rigged, he tells Ekot.