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Key comments from Skingsley in Minutes

RIKSBANK
  • "Even if in my view, and as is also highlighted in the draft Monetary Policy Report, there is scope to take the repo rate back into negative territory, it is a fact that the repo rate itself has been overshadowed in its role as the primary monetary policy tool."
  • "For the repo rate to be able to return to being a more powerful policy tool, nominal average interest rates in the economy need to rise to a higher level and for that to happen, higher average inflation is required.
  • "Applied to the current situation, it is not in my view a concern if inflation recovers more rapidly than forecast. Neither is it a concern if inflation overshoots the target of 2 per cent for a period as this can help anchor inflation expectations more firmly around the target. With stronger anchoring of inflation expectations, price setting and wage formation will function more efficiently."

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