Explain how the data in Extract D (Figures 1 and 2) show why the Swedish central bank (Riksbank) may have been considering a further cut in its policy rate of interest.
Extract D
Figure 1: Annual real GDP growth rates (%) for Sweden, 2017–2022
| Year | Annual real GDP growth rate (%) |
|---|---|
| 2017 | 2.8 |
| 2018 | 2.4 |
| 2019 | 1.9 |
| 2020 | 1.4 |
| 2021 | 1.1 |
| 2022 | 0.8 |
Figure 2: Consumer price index (CPI) for Sweden, 2017–2022 (June 2018 = 100)
| Date | CPI index |
|---|---|
| 31 Dec 2017 | 98.80 |
| 31 Dec 2018 | 100.50 |
| 31 Dec 2019 | 101.91 |
| 31 Dec 2020 | 102.93 |
| 31 Dec 2021 | 103.44 |
| 31 Dec 2022 | 103.65 |
176 exam-style questions on AQA A Level Economics 2.4 Financial markets and monetary policy (A-level only), covering 2.4.1 The structure of financial markets and financial assets, 2.4.2 Commercial banks and investment banks, 2.4.3 Central banks and monetary policy, and 2.4.4 The regulation of the financial system. Each one has a worked solution and a mark scheme showing where the marks go.