Kerstin af Jochnick visits Karlstad
On Tuesday First Deputy Governor Kerstin af Jochnick visits Karlstad. There, she will talk about the economic situation and the most recent repo-rate decision, including a lecture organised by the Chamber of Commerce. Ms af Jochnick will also eat lunch with representatives of the local business sector.
The Executive Board of the Riksbank recently decided to cut the repo rate to -0.10 percentage points, and to adjust the repo-rate path downwards. Moreover, the Riksbank is buying government bonds for the sum of SEK 10 billion.
"The economic situation in Sweden looks fairly good. But inflation is low and there is a risk that the oil price will bring down inflation expectations even further. At the same time, developments on the foreign exchange market are difficult to assess. By making monetary policy even more expansionary we provide support to the development we see ahead, of higher underlying inflation, and we counteract the low oil price pushing down inflation expectations," says Ms af Jochnick.
At the same time, Ms af Jochnick expressed a warning in her presentation that the very expansionary monetary policy increases the risks linked to high household debt and that this could lead to greater vulnerability for the Swedish economy. "There is an urgent need to attain a healthier development in household debt," says Ms af Jochnick.
Follow the linkto see the slides shown by Kerstin af Jochnick during her presentation at the chamber of commerce.
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.
