Stefan Ingves in an hearing on monetary policy at the Riksdag Committee on Finance
On Thursday, Governor Stefan Ingves and Deputy Governor Henry Ohlsson are taking part in the year's third hearing on monetary policy at the Riksdag Committee on Finance.
Stefan Ingves: Sweden must take international developments into account
Mr Ingves will begin the hearing by presenting the latest monetary policy decision taken at the end of October, when the Executive Board of the Riksbank decided to increase purchases of government bonds, leave the repo rate unchanged at -0.35 per cent and defer an initial rise in the rate by six months. Mr Ingves points out how dependent the Swedish economy is on international developments. Uncertainty remains about the strength of global economic activity and international monetary policy. The low interest rate level in Sweden has contributed to us having relatively strong economic activity with stable GDP growth, falling unemployment and inflation that has been rising since last year. Mr Ingves notes that it is important to maintain the positive trend by having low interest rates, to ensure inflation continues to rise towards the target. He also maintains that the low interest rate level could increase risks linked to the housing market and high household indebtedness, and therefore stresses the importance of other policy areas managing these risks in different ways.
Ohlsson: Opportunities and challenges of increased immigration
In his introduction, Henry Ohlsson focuses on the opportunities and challenges posed by increased immigration to Sweden. According to Mr Ohlsson, as the country's growth depends to a large extent on how its population develops in the long term, the increased immigration is a positive and much-needed addition to the ageing Swedish population. However, he also highlights the challenges posed by increased immigration: that it is difficult for vulnerable groups to enter the labour market and that housing construction needs to increase to meet housing needs.
