Unchanged Rates, Adds Guidance on Likely Cuts Ahead

The Riksbank holds policy rates at 4.00% as unanimously expected.

Highlights at the policy statement:

• "It is likely that the policy rate can be cut in May or June if inflation prospects remain favourable"
• "Given the very high inflation in recent years and changed pricing behaviour in the corporate sector, the Executive Board wants further confirmation that inflation will stabilise close to the target"
• "The need for contractionary monetary policy declines when inflation falls towards the target and economic activity is weak."
• "However, the Executive Board emphasises that there are risks that could cause inflationary pressures to rise again. These include new supply shocks following on from the geopolitical unrest, the krona continuing to weaken or companies’ pricing behaviour not normalising as expected".

Link here: https://www.riksbank.se/en-gb/press-and-published/...