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MNI BRIEF: Riksbank's Ingves-Covid Exit May Cause Volatility

(MNI) London

Market tensions are inevitable as stimulus introduced in response to Covid is unwound without the international coordination with which it was introduced, Riksbank Governor Stefan Ingves said on Tuesday.

In a presentation at SEB, Ingves highlighted the divergence between inflation outlooks in different jurisdictions, with markedly higher rates in the U.S. and UK than in Sweden and with the European Central Bank only expected to tighten policy later than some of its counterparts. The Riksbank’s own policy response tends to be closer to that of the ECB than the Fed, he noted.

In other remarks, he said the split on the Riksbank board over when to start to unwind asset purchases was a marginal issue and he defended his support for keeping the stock of purchases unchanged for now, saying there was a tendency for policymakers to want to change policy too early.

MNI London Bureau | +44 203-586-2223 | david.robinson@marketnews.com
MNI London Bureau | +44 203-586-2223 | david.robinson@marketnews.com

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