MNI BRIEF: Riksbank Minutes Show End Forecast Hike Debated

The Riksbank did discuss the case for showing the repo rate rising at the end of its three-year forecast, before deciding to stick with its flat zero per cent projection, the minutes of its June 30 meeting show. Martin Floden explicitly said that a "a rate rise during the second half of 2024 may be justified."

The minutes, however, highlighted how the Riksbank is conducting something close to average inflation targeting, with members arguing that the prolonged undershoots of the inflation target meant it was not a bad thing if there were periods where inflation overshot now and that it was too early to predict tightening.