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MNI BRIEF: Riksbank Minutes Show Cracks Under Unanimous Hike

(MNI) London
(MNI) London

The Riksbank board was unanimous in backing the 50 basis point June hike and members endorsed the central forecast, but the minutes revealed divisions under the surface. Deputy Governor Henry Ohlsson said that "If there had been a majority at today's meeting in favour of raising the policy rate by 0.75 percentage points, I would have supported it."

Deputy Governor Anna Breman stressed that "monetary policy may need to change direction" rather than just raising the policy rate to around 2.0% and staying there, as the bank projected, as inflation risks are on the upside and growth ones on the downside. Meanwhile, First Deputy Governor Cecilia Skingsley will have left before the next regular meeting and Governor Stefan Ingves leaves at year end, adding to the policy uncertainty.

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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