Henry Ohlsson on monetary policy tour in Gothenburg
"Monetary policy is having an effect. There has been an upward trend in inflation since last year. Monetary policy needs to remain expansionary for inflation to continue to rise towards the target.”
These are the comments of Deputy Governor of the Riksbank Henry Ohlsson as he visits Gothenburg on Thursday and Friday. He is talking about monetary policy and the most recent interest rate decision at various locations, including a seminar arranged by Chalmers Börssällskap.
Ohlsson is also highlighting the significance of the inflation target for price and wage formation. "The Riksbank does not control wages, it is responsible for monetary policy. Labour market parties decide on wages," Ohlsson points out.
Ohlsson is emphasising that the Riksbank’s wage forecasts are estimates based on what is normal in the current economic situation. If inflation becomes lower than in other countries, this could lead to the krona exchange rate strengthening in the long term. In that case export companies would have a tougher time, and that in turn would affect the whole economy.
In terms of the risks that accumulate in connection with the low interest level, Ohlsson is pointing out that the Riksbank has been seeking measures within other policy areas for several years. It is a question of dampening the pressure of the rise in debt using macroprudential measures, but also of creating a better balance between supply and demand on the housing market.
Follow the link to see the slides shown by Henry Ohlsson during his presentation at the Chalmers Börssällskap seminar.
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 give presentations and meet representatives of the business sector, local government, media and higher education institutions in the area.
