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MNI BRIEF: No Reversal, Next Hike 25 Or 50bps -Riksbank Breman

(MNI) London

The question facing Riksbank policymakers is whether to hike by 25 or 50 basis points at the next meeting, First Deputy Governor Anna Breman told reporters Tuesday, as she also made the case for publishing a three-year rate path with no reversal of the hikes factored into it. The next policy decision will be taken at the April meeting and the Riksbank will update its quarterly rate projections then, with Breman making clear that after a further hike she thinks that the three year rate path should is unlikely to show any reversal.

"Right now we are more focussed on further tightening than starting to talk about reducing tightening ... It is much more in line with our policy to have a flat rate path," Breman said in response to a question from MNI.

"I am concerned about the medium term inflationary risks and I think it is reasonable to show that it (the policy rate) is likely to stay at high levels for longer than we have seen historically," she said.

MNI London Bureau | +44 203-586-2223 | david.robinson@marketnews.com
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MNI London Bureau | +44 203-586-2223 | david.robinson@marketnews.com
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