Jansson in Jönköping: The economic situation
On Thursday Deputy Governor Per Jansson visits Jönköping. He is there to talk about the economic situation and the most recent repo-rate decision at various locations including a breakfast meeting arranged by the chamber of commerce and at the university college in Jönköping. Mr Jansson will also make a company visit and take part in a lunch with representatives of the local business sector.
The Executive Board of the Riksbank recently decided to cut the repo rate to -0.10 per cent, and to adjust the repo-rate path downwards. The Riksbank will also buy government bonds for SEK 10 billion.
"The international situation has become more uncertain and this increases the risk that inflation in Sweden will not rise fast enough. By making monetary policy more expansionary we support the upturn in inflation. We are also prepared to do more at short notice if this were to prove necessary to get inflation to rise towards the target," says Mr Jansson.
Mr Jansson also points out in his presentation that the inflation target has contributed to significant stability in wage formation in Sweden since the late 1990s, in sharp contrast to the 1970s and 1980s, when wage formation created huge imbalances in the form of extreme variations and high average nominal wage increases. "If wage formation were to deviate from the inflation target now, it could be a dangerous road to travel," said Mr Jansson.
When the Monetary Policy Reports are published in the spring and autumn, members of the Executive Board visit different areas in Sweden and present the monetary policy decisions. The members then hold speeches and meet representatives of the business sector, local government, media and colleges in the area.
Follow the link to see slides shown by Mr Jansson during his presentation at the university college in Jönköping.
