MNI BRIEF: No Inflation/Growth Trade-Off - Riksbank's Jansson
A first rate cut could come as late as after the summer, Riksbank Deputy Governor Jansson says.
The Riksbank sees no trade-off with growth as it focusses on bringing inflation to target, Deputy Governor Per Jansson said on Thursday, adding that a first interest rate cut might come as late as after summer.
"In some discussions that we have had internally at the bank I have been always saying that to me the short run trade-off between inflation and the real economy does not exist,” Jansson told reporters after a speech at Nordea. Asked about potential for a March cut, Jansson said "May and June looks to me at the moment much more realistic, but I can't rule out even after the summer."
policymakers will keep a close eye on the krona. (See MNI INTERVIEW: Riksbank Eyes Krona In Dovish Shift-Governor)
"We will probably need to understand a little bit better where the other central banks are not to get hit then by krona depreciation. That would be problematic," Jansson said.