MNI BRIEF: Riksbank Jansson: Open-Minded On A QE Exit Strategy

Riksbank Deputy Governor Per Jansson is open-minded about how the eventual sequencing of policy tightening should be carried out, leaving the door open to quantitative easing unwind before hiking the policy rate or doing the two side-by-side.

In response to an MNI question Jansson told a media briefing it was "a big game changer" that policymakers now perceived asset purchases as a complement, not a substitute, for policy rate changes and "when you think about an exit strategy it has become a bit more complicated and I am more open minded (about) how you could combine these things."

The one combination he ruled out was hiking while still doing net asset purchases and he said that the policy rate could go lower and "maybe in the case of Sweden the scope is ... -0.5% to -1.0% or something like this."