Jansson: Important that the upward trend in inflation continues
On Thursday, Deputy Governor Per Jansson is visiting Örebro where he is talking about the most recent interest rate decision. The Executive Board decided to cut the repo rate to –0.50 per cent last week.
Mr Jansson points out that inflation has shown a rising trend since the spring of 2014 and that confidence in the Riksbank’s inflation target has recently increased. At the same time, growth in the Swedish economy is high and the situation on the labour market has improved. The expansionary monetary policy has contributed to this positive development.
“Using the strong economic situation in Sweden as an argument against the Riksbank’s expansionary monetary policy is rather strange. The fact that things are going well for Sweden is very much a result of the monetary policy being pursued,” Mr Jansson says.
Mr Jansson points out that we are not yet on a firm footing as inflation in 2016 will be lower than the Riksbank has previously forecast. This increases the risk of once again weakening confidence in the inflation target and hence of inflation not rising towards the target as expected.
“We cannot expect the upturn in inflation to be dead straight and without setbacks. But the upward trend must continue and confidence in the inflation target must be safeguarded. This is the important thing and is why we need to continue to have a high level of preparedness to take additional monetary policy measures,” Mr Jansson concludes.
In conjunction with the Monetary Policy Reports, members of the Executive Board go to different part of Sweden and abroad to present the conclusions from the monetary policy decisions. 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 representatives of universities or colleges in the area concerned.
