Comments by Deputy Governor Lars Nyberg
"With reference to my remarks at Wednesday’s arrangement by Öhman Fondkommission, I have the following comment to make: I made it clear from the beginning that I had no intention of conveying any new information. What I had to say, however, has been interpreted in different ways. Under these circumstances I want to clarify my position on monetary policy."
"I assess new information continuously, I want to see, for example, how capacity utilisation and the output gap are developing, along with their effects on wage formation and inflation. My position on any repo rate adjustment is something I shall finally decide at the next monetary policy meeting, on October 5th," Lars Nyberg says.
Mr. Nyberg pointed out that the relationship between the repo rate and inflation is not self-evident, and that it very probably varies over time. Consequently, monetary policy is not an exact science. It is hardly possible to control inflation with some form of fine-tuning.
"Concerning the effects of fiscal policy, I said that tax cuts in an upward cyclical phase are unusual. It is possible that the stimulatory effects of the proposed tax relief are not all that substantial for the path of inflation. That remains to be seen," Mr. Nyberg says.
"The theme of my address was primarily the commercial ideas for the Riksbank subsidiaries Tumba Bruk AB and Pengar i Sverige AB (PSAB)," Mr. Nyberg concludes.
The principles for monetary policy signalling and new information are the same as before. This means that new information is spread simultaneously to everyone, usually in the form of a prepared statement, press release or press conference. New information shall not be divulged in other contexts. All members of the Executive Board have a right to make statements about the forward-looking monetary policy and then observe these principles. The Board members express their personal opinion unless indicated otherwise.
