CORRECTED-MNI: Fed's Hammack-Near Or At Time To Slow Rate Cuts

MNI BRIEF: Fed's Goolsbee Sees Rates Fair Bit Lower In A Year

CANADA JOBLESS RATE +6.8% VS FORECAST +6.6%, PRIOR +6.5%

MNI China Daily Summary: Friday, December 6

MNI: PBOC Net Drains CNY288.1 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Lower At 7.1848 Fri; -1.64% Y/Y

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT PRELIMINARY DEC INDEX 74.0

CANADA NOV IVEY PURCHASING MANAGERS INDEX 52.3 SA

EZ/UK Bond Supply Calendar: Austria, UK Auction on Tuesday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Skingsley: "Asset holdings need to remain unchanged in 2022"

RIKSBANK
  • "I advocate a cautious approach. Given the inflation forecast for the next three years, asset holdings need to remain unchanged in 2022. Once a portfolio wind-down is initiated, it needs to be gradual and predictable."
  • "Given the gradual increase in cost pressures over the forecast period, a higher repo rate after 2023 is perfectly reasonable."
  • "If the economic outlook changes in such a way that a different monetary policy forecast is justified than the one decided today, I see the repo rate as the primary tool, rather than making specific changes to the asset portfolio, in addition to the projected unwinding. The reason for this is that we have more knowledge about the impact of changes in the policy rate on the economy as a whole compared to the purchase, management and maturity of interest-bearing securities."
  • "With a persistently low real interest rate, the Riksbank will find it difficult to stimulate the economy sufficiently in a future recession with the repo rate alone. With the limited room for manoeuvre, it is therefore important not to be in too much of a hurry to tighten. Put simply, the scope for correcting this, should it turn out to be wrong, is very limited."
HomepageBulletMarketsFixed Income BulletsForeign Exchange Bullets

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.