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Minutes: Board Members Support Guidance From May Meeting

RIKSBANK

The Riksbank’s minutes suggest that all Executive Board members were comfortable cutting the policy rate at the May meeting. SEK has seen little reaction to the release as a result.

  • While it was already known that the May decision was unanimous, we were interested in seeing how close a call this was for some of the more cautious members of the Executive Board.
  • Overall, the Board suggest that a June cut is unlikely (in line with the May meeting guidance). Floden: “more rate cuts will likely be justified this year, but that it will probably not be appropriate to cut the rate again as early as June”.
  • Board members continued to highlight risks to the inflation outlook arising from geopolitics, the weak krona and the strong US economy. Thedeen: “Swedish monetary policy will continue to be based on developments in the Swedish economy and inflation, but it will not be unaffected by developments in the United States”.

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