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MNI BRIEF:  Riksbank's Ingves-Room To Hike If Inflation Sticky

Riksbank Governor Stefan Ingves said it had ample scope to tighten if inflation proved persistent, though the Riksbank's central view is that its rise will be transitory.

With the policy rate at zero "we have plenty of space on the upside if we are completely wrong (on inflation)," Ingves said at a European Economics and Financial Centre, University of London event.

Prolonged period of negative real rates could fuel excessive leverage, Ingves said, but he stressed that as a small, open economy Sweden had to set a rate in line with global real rates. Its board is currently forecasting no rate hike for the next three years.

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com

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