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Key comment from Skingsley

RIKSBANK
  • "In a scenario where the need for monetary policy support increases further, I consider it fully possible to cut the repo rate. It is difficult to express in advance the exact circumstances that would justify a repo rate cut, but a clear fall in inflation expectations - for instance, driven by a rapid and substantial appreciation of the krona exchange rate - would be a convincing factor for me to support a decision to cut the repo rate below zero again."
  • But she does note that inflation expectations had stopped falling and started to stabilise.

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