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Minutes: Floden: Major uncertainty but probably 25bp or 50bp hike in April

RIKSBANK
  • "The forecast for the policy rate indicates that it will probably need to be raised in April as well, by either 0.25 or 0.5 percentage points. This is an assessment I share, but the major fluctuations over the past year have proven that such assessments are associated with major uncertainty. By the next monetary policy meeting in April, we will have three new inflation outcomes to analyse and clearer indications of how our initial rate rises have influenced economic developments."
  • "The important signal from the rate forecast is that inflation is still in focus for monetary policy. It is not enough for inflation to start moving downwards this year. We need to see that inflationary pressures, in the form of underlying inflation and price- and wage-setting, are compatible with inflation that is permanently close to two per cent. Monetary policy will be adjusted going forward in order to achieve this."

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