Breman Re-iterates Cautious Tone In DN Interview

In an interview with DN (link below), Riksbank First Deputy Governor Anna Breman re-iterated the cautious tone she struck in the January meeting minutes. She notes that policy rates will likely need to be kept on hold for a "while to come", at least until there is sufficient evidence that inflation has stabilised at a lower level.

• In the minutes, she admitted that the policy rate can probably be cut earlier than indicated by the November MPR forecast, but that discussions on rate cuts in the near-term is still too early.
• She once again highlighted the importance of financial conditions in the transmission of monetary policy, and that there is a "big risk" that those calling for early rate cuts may be disappointed.
• While last week's policy statement indicated a dovish tilt in the Riksbank's guidance, proceeding comments from the Executive Board and the meeting minutes have softened the shift somewhat. It is clear that the Riksbank will remain data dependent in the lead-up to their easing cycle.
• Link to interview (in Swedish) here.