Annika Alexius is a professor of economics at Stockholm University. Photo: Rickard Kilström

Inflation is falling more than expected, down to 1.2 percent in August according to the CPIF, the Riksbank’s target variable. The Riksbank’s target is 2.0 percent.

In Radio Sweden’s programme Studio ett, Annika Alexius, Professor of Economics at Stockholm University, meets Nordea’s chief economist Annika Winsth in a discussion about interest rate cuts.

”Take your foot completely off the brake, in other words, lower the interest rate by 1 percent,” says Annika Alexius. Annika Winsth disagrees: ”I think that's inappropriate and risky.”