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

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.