Part 3/9:
The primary catalyst for Sweden’s economic downturn was the peak in inflation, which soared to around 12% in December 2022—significantly above the European average. In an effort to combat this inflationary rise, Sweden's central bank initiated an 18-month campaign of interest rate hikes, culminating in a peak rate of 4% by December 2023. This aggressive monetary policy had immediate impacts on ordinary citizens, particularly in the housing market.