Flodén: The Riksbank and Monetary Policy
"It is important that inflation rises towards the target of 2 per cent. We will continue to conduct an expansionary monetary policy to ensure that inflation rises. If the measures we have implemented so far are not sufficient to make inflation rise, we are prepared to do more."
This comment is made by Deputy Governor Martin Flodén during his visit to Luleå and Haparanda on Tuesday and Wednesday. He is there to talk about the economic situation and the most recent repo-rate decision and his meetings include a breakfast with representatives of banks in the region. Mr Flodén is also making two company visits and giving a lecture at the Swedish-Finnish folk high school in Haparanda. In Luleå, he will also meet the county administrative board.
The Executive Board has decided during the year to cut the repo rate to -0.25 per cent, and to buy government bonds for a total of SEK 80-90 billion.
At the same time, Martin Flodén points out that the low interest rates can lead to exaggerated risk taking both on the housing market and the financial markets. There is an urgent need to reduce the risks. He therefore takes a positive view of the attempts by the Government and the Alliance to try to draw up a legal act enabling Finansinspektionen (the Swedish Financial Supervisory Authority) to introduce an amortisation requirement.
Follow the link to see the slides Mr Flodén showed during his lecture at the Swedish-Finnish folk high school in Haparanda.
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.
The hosts for Martin Flodén's visit are the county administrative board in Norrbotten, Haparanda town and the Chamber of Commerce in Norrbotten.
