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Minutes: Flodén: Can see situations for one last hike or additional hikes

RIKSBANK
  • "There are mainly three developments that together justify the tightening: Although the economic outlook is difficult to interpret, it seems stronger than our previous assessment. The krona has again depreciated significantly. And the latest inflation outcomes are a disappointment despite CPIF inflation declining more than expected."
  • "I also support the policy-rate forecast indicating that the rate will need to be increased to 4 per cent later this year. But this assessment is associated with considerable uncertainty."
  • "If the outcomes are approximately in line with our forecast... at the same time as there are growing signs of a rapid weakening of the economy, I can envisage a situation in which it will be appropriate to hold the policy rate at 3.75 per cent for the rest of the year. But this probably will also require the krona to appreciate somewhat from its current level, perhaps caused by a similar slowdown in inflation and economic activity abroad."
  • "I can also see scenarios in which the policy rate will need to be raised more than in the forecast."

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