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MINUTES: Ohlsson: Repo rate needs to be a couple of ppt higher in a few years

RIKSBANK
  • "What we had deemed temporary effects on inflation turned out to be more persistent. They also gave rise to indirect effects on inflation."
  • "The high inflation we have had in recent months risks setting off a spiral of price increases, wage drift, price increases, wage drift, etc. in the near term. It is essential to manage these tendencies in time. Therefore, it is time to adjust the direction for monetary policy. It must become less expansionary, the repo rate should be raised in my opinion. It is important to act in good time. This also makes it possible to take action in small steps."
  • "The repo rate needs to be a couple of percentage points higher in a few years’ time. At the same time, I think that if we begin to act in time, there is also a possibility to adapt monetary policy gradually."

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