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Conflicting views on the impact of SEK appreciation

RIKSBANK

So the most interesting discussion in the Riksbank Minutes surrounds the currency:

  • Ingves says that if the krona appreciates more than expected that the Riksbank "will have to think carefully about whether such a development would require an even more expansionary monetary policy."
  • However, Breman takes the opposing view noting that: "I do not consider this appreciation in the krona and the risk of it strengthening further in the near term to be an argument for expanding asset purchases."
  • With most of the other Executive Board members making their views less explicitly clear these comments throw more confusion on how much the krona would have to appreciate for the Riksbank to consider acting further.

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