Riksbank’s Ingves: Too early to change direction in monetary policy
|It’s “too early to change direction in monetary policy,” Riksbank’s Governor Stefan Ingves said following the monetary policy decision announced earlier on.
Key quotes
Inflation expectations are around 2%, which is good.
Inflation pressure is still too low.
Aims to keep asset portfolio at roughly same level in 2022, replace bonds that mature.
Sweden has good possibilities to do more both on fiscal and monetary policy side if it were needed.
Not big worry if inflation were to be over 2% for a time.
The Swedish central bank held interest rates at 0.000%, as widely expected, and pledged to continue to buy securities with an envelope of SEK700 billion.
Market reaction
The Swedish krona (SEK) spiked to daily highs of 10.11 against the euro on the policy announcement before reversing sharply to the lows at 10.1538.
At the time of writing, EUR/SEK rises 0.30% to 10.1460.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.