Free Trial

Minutes: Jansson: Doubts about upward revision to repo rate path

RIKSBANK
  • Sets out five arguments "why I currently feel so convinced that the rise in inflation in Sweden will indeed be temporary and not as large as it has been in some other countries."
  • "I have doubts about the proposed upward revision of the repo-rate forecast in 2024. The reason for my hesitation, as I have already mentioned in both June and September, is that I do not see that the inflation dynamics in a slightly longer time perspective justify such a revision."
  • "I am nonetheless not going to enter a reservation against the repo-rate forecast. A cautious increase in the interest-rate forecast at the end of the forecast period is unlikely to have a major impact on financial conditions in Sweden in the current situation or to be perceived as strange in view of the ongoing discussion on inflation risks. There will also be plenty of time to revisit this issue before it really matters."
  • Re QE breakdown: "In relative terms, purchases of government and municipal bonds in particular are increasing, which I think is a good thing because the need to support the functioning of private markets has diminished and it is now more about ensuring that financial conditions remain expansionary."

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.