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Minutes: Key comments from Breman

RIKSBANK
  • "I still think that the envelope for asset purchases could have been somewhat smaller in the second half of 2021, but I support the overall direction of monetary policy."
  • However, "an unexpectedly early tapering risks leading to financial tightening and allowing negative effects of the crisis to persist. I also support the assessment that net purchases continue until the end of 2021 and that holdings are maintained via reinvestments in 2022."
  • "I would like to say that I am hopeful that the next step will be a rate rise rather than a rate cut. But a wish is not the same as a forecast. A rate cut is still fully possible. My assessment is that the probability of the next step being a rate cut or a rate rise is approximately the same."
  • "There are reasons to be optimistic that the recovery in the Swedish economy can be strong and that inflation will gradually rise towards the target. But there is no new positive or negative information that is sufficient to support a change in the direction of monetary policy at today's meeting. Withdrawing the Riksbank's current measures too early risks hampering the recovery that is now underway. And, it is still important to have a high level of preparedness to use all our tools if developments were to be worse than expected."

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