Thedeen Notes That Risks To Inflation Outlook Remain

The short summary of Riksbank Governor Thedeen's speech at Nordea this morning provides little new relative to his comments in the Riksbank's March meeting minutes (released last week):

“The outlook for inflation has continued to improve and the risk of inflation becoming entrenched at levels that are too high has declined. We are therefore approaching a situation where the need to conduct a contractionary monetary policy is declining. However, the risks of setbacks still remain. Exchange rate developments in particular create uncertainty. A weaker krona could provide unwanted inflationary impulses.”