Ingves: "The very expansionary monetary....>

RIKSBANK: Ingves: "The very expansionary monetary policy was never intended to

last forever. Now when inflation is around 2 per cent, monetary policy is slowly

going in a less expansionary direction, with a rate rise late last year, and

another late this year or early next year. Sweden is a small, open economy with

free capital movement and a floating exchange rate. However, this does not mean

that we as monetary policy-makers can act completely independently of

developments in the world's major economies. If we look at Swedish monetary

policy in a slightly longer time perspective, we can say that Swedish rates

should often be between those in Europe and those in the United States, and most

often closer to those in Europe due to its greater significance for the Swedish

economy. And if we look at the forecasts in the draft Monetary Policy Report, it

is just such a monetary policy that is being proposed in the period ahead."