MNI BRIEF: Riksbank Jansson Not Nervy If Inflation Overshoots

RIksbank Deputy Governor Per Jansson said Friday it was important that policymakers "don't become nervous too quickly" if inflation and inflation expectations move above target. Speaking at a Citi event Jansson said that "I know that nervousness is increasing here and there" but he stressed that he found it hard to envisage economic developments that would result in a prolonged period of high inflation.

"We do not see a big threat of high and persistent inflation," he said. The Riksbank Executive Board has projected that the policy rate will remain at zero percent through 2024, but some members of the committee have raised the possibility of factoring in a rate hike into the forecast. Taking out energy price increases Jansson noted that Swedish inflation was just 1.5%.