Riksbank’s Ingves: Too early to change direction in monetary policy

Dhwani Mehta FXStreet

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.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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