af Jochnick: More expansionary monetary policy so that inflation will rise towards the target
On Friday, First Deputy Governor Kerstin af Jochnick is in London where, among other things, she will give a presentation at Morgan Stanley. Ms af Jochnick talks about the latest monetary-policy decision and explains that although there are signs that underlying inflation has bottomed out the international situation is uncertain and this increases the risk that inflation will not rise rapidly enough. Monetary policy therefore needs to be expansionary.
At the latest monetary policy meeting, the Executive Board decided to cut the repo rate by 0.10 percentage points and to adjust the repo-rate path downwards. The Riksbank will also buy government bonds for SEK 10 billion.
Ms af Jochnick emphasises that these measures, as well as the readiness to do more at short notice should the need arise, underline the Riksbank's determination to safeguard the role of the inflation target as a nominal anchor for price setting and wage formation.
When the Monetary Policy Reports are published, members of the Executive Board visit different areas in Sweden and abroad to present the conclusions of the monetary policy decision. The members give presentations and, depending on the situation, meet financial-market players and representatives of business and industry, local government, the media and/or universities or colleges in the area concerned.
Follow the link to see the slides shown by Kerstin af Jochnick during her presentation at Morgan Stanley.
