MNI BRIEF: Riksbank Minutes Show Focus On Inflation Undershoot
MNI (LONDON) - The minutes of the Riksbank Executive Board's September meeting showed plenty of discussion about the risks of inflation persistently undershooting the 2% target although there was some clear opposition to cutting by 50 basis points rather than pressing ahead with consecutive 25bps cuts.
All five board members were broadly supportive of the lower rate profile in the September Monetary Policy Report and all voted for the 25 bps cut.
Deputy Governor Anna Seim said that the issue she had been thinking about the most "is the risks of inflation being persistently lower going forward" and there was debate about "looking through" weak inflation outturns, with the target CPIF measure falling to 1.2% in August, but the minutes made clear that while there is some possibility of a 50bps cut it is a slender one. (See MNI INTERVIEW: Inflation Confidence Key To Fast Cuts -Thedeen)