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Riksbank Chief Says No Need For Further Monetary Policy Measures

If the Swedish economy develops as expected there should be no need for other monetary policy measures, Riksbank Governor Stefan Ingves said at the monetary policy meeting in October.

According to the minutes of the meeting, Ingves said monetary policy is highly expansionary from a financial perspective and should lead to rising inflation.

At the meeting, the executive board decided to cut its key rate by a quarter point to zero from 0.25 percent.

Members were unanimous in the view that policy needs to be even more expansionary for inflation to rise and attain the target. All members voted to cut the repo rate to zero and advocated that the repo rate path should be lowered substantially.

Policymakers said the low repo rate will raise demand in the economy, which will contribute to a rise in inflation.

Ingves said the monetary policy in the present situation is a question of risk management, not a question of fine tuning to the last decimal over a three-year horizon.

He concluded by saying that if some unforeseen event occurs that upset the assessment, then it will be a question of adapting to the situation further ahead.

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