Ingves and Jansson: Hearing on monetary policy
Date
18/11/2014
On Tuesday, Governor Stefan Ingves and Deputy Governor Per Jansson take part in the year's third hearing on monetary policy at the Riksdag Committee on Finance.
Mr Ingves describes developments in the Swedish economy and in his introduction places particular emphasis on discussing different explanations for the low rate of inflation. He talks about how the Swedish economy is performing relatively well, but inflation is too low. The Executive Board of the Riksbank recently cut the repo rate to zero per cent for inflation to rise towards the target of 2 per cent. Slow increases in the repo rate are expected to begin in the middle of 2016, when inflation has clearly picked up. Mr Ingves points out that the repo rate now needs to be low for inflation to rise, but he also raises a warning finger, saying that the low interest rates also increase the risks to the economy associated with high household indebtedness.
Mr Jansson gives his perspective on the monetary policy conducted in recent years. He shows how inflation became much lower from the latter part of 2013 and onwards and stresses that monetary policy has reacted to this decisively to ensure that inflation expectations remain firmly anchored around 2 per cent. Mr Jansson points out that monetary policy is clearly focused on bringing up inflation. He assesses that the very expansionary monetary policy being conducted is sufficient, but at the same time he says that the Riksbank has further tools at its disposal if greater stimulus proves necessary.
Follow the links to view the slides shown at the hearing.
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.
