Ingves and Skingsley: Hearing on monetary policy
Date
20/09/2013
On Friday Governor Stefan Ingves and Deputy Governor Cecilia Skingsley took part in the year's second hearing on monetary policy at the Riksdag Committee on Finance.
Mr Ingves began the hearing by saying that the Swedish economy had managed relatively well in recent years, despite the debt crisis in the euro area. Although growth in Sweden is weak, there are increasing signs that confirm economic activity is beginning to improve. Mr Ingves pointed out that the Riksbank is holding a low repo rate that supports economic activity and will contribute to inflation attaining the target of 2 per cent during 2015, at the same time as the risks linked to households' high indebtedness are taken into account.
Ms Skingsley then talked about her assessment of monetary policy. She said that although there were reasons in favour of an even lower repo rate, the reasons for holding the repo rate unchanged weighed heavier, in her opinion. The repo rate is already very low, which supports the recovery in the Swedish economy and will contribute to inflation attaining the target. Moreover, Ms Skingsley said that monetary policy cannot disregard the risks to the economy linked to households' high indebtedness.
Both Ms Skingsley and Mr Ingves also welcomed the Government's proposal on macroprudential policy, which creates better conditions for reducing the risks linked to household indebtedness in Sweden.
Follow the links to see the Powerpoint presentations to the Riksdag Committee on Finance.
The Governor of the Riksbank and one of the deputy governors attend hearings on monetary policy at the Riksdag Committee on Finance three times a year.
