MNI BRIEF: Riksbank's Breman Expects Slowdown In Coming Months

Monetary tightening effects will likely feed through to the wider economy Anna Breman, the Riskbank's First Deputy Governor said Thursday, although she was concerned that while households have so far been resilient the effects of hikes may become disproportionately large at some higher level of policy rate.

Speaking at an EC conference, Breman said while Swedish households in aggregate have a lot of saving, and these may have supported consumption, there may be "non-linearities over a certain level," with consumption falling sharply at some rate level, Breman.

In other remarks she said that the Riksbank had plenty of internal estimates of the neutral interest rate, but there was uncertain over whether it was continuing to rise. This was one reason why the Riksbank has stressed that policy will remain restrictive without putting a figure on what a restrictive policy rate level is.