Free Trial

MNI BRIEF: No Downturn In Core Inflation - Riksbank's Thedeen

(MNI) London

Sweden's core inflation was too high and yet to begin its descent, Riksbank Governor Erik Thedeen said Tuesday, while noting the central bank's planned gilt sales would only have a marginal impact on prices with the policy rate the key tool for combatting inflation. In response to questions from MNI, Thedeen said that "the big picture (is that) ... underlying inflation has not turned and is still too high."

The Riksbank raised its policy rate from 2.5% to 3.0% at its February meeting and announced plans to start selling nominal and inflation-linked government bonds at a pace of SEK3.5 billion per month. (MNI RIKSBANK WATCH: At Least One More Hike After 50Bps In Feb)

Thedeen said that bond sales would marginally lower the need to hike interest rates but he stressed that the policy rate its primary tool. He has previously stated that he expects another rate increase of 25 or 50 basis point in the Spring.

MNI London Bureau | +44 203-586-2223 |
MNI London Bureau | +44 203-586-2223 |

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.