October 03, 2024 06:27 GMT
RIKSBANK: Jansson Notes 25bp Cuts In Nov and Dec Is Main Scenario
RIKSBANK
Central Bank NewsCEEMEABullet RiksbankSwedenGlobalFixed Income BulletsForeign Exchange BulletsRegionMarkets
Riksbank Deputy Governor Jansson has spoken at a breakfast seminar organised by Danske Bank:
- "SWEDISH C.BANK'S JANSSON: - WE AREN'T TOO WORRIED ABOUT A CONSMUPTION DRIVEN UPTICK IN INFLATION AS A RESULT OF RATE CUTS - RTRS
- "SWEDISH C.BANK'S JANSSON: WE NEED TO SEE AN ECONOMIC RECOVERY IF INFLATION IS NOT TO UNDERSHOOT"
Jansson striking an unsurprisingly dovish tone here. In the September meeting minutes, he continued to advocate for a faster pace of rate cuts than in June/August.. He was only worried about headline CPIF inflation undershooting the 2% target if it begins affecting "confidence in the inflation target".
- "*RIKSBANK'S JANSSON: 25BP CUTS IN NOV., DEC. IS MAIN SCENARIO" bbg
- "*JANSSON: 50BPS IS POSSIBLE AND CONSISTENT WITH GRADUAL APPROACH" bbg
We aruged that the September meeting minutes were consistent with 25bp cuts at the next two meetings, but a 50bp cut is certainly possible if the data warrants it. Jansson's commentary on 50bp cuts being consistent with a gradual approach aligns with Governor Thedeen's remarks in the minutes and the September meeting press conference.
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