af Jochnick: Expansionary monetary policy provides support to the Swedish economy
“Our monetary policy has contributed towards the country now experiencing good GDP growth and falling unemployment.” This is the message of a speech held by First Deputy Governor Kerstin af Jochnick at Handelsbanken in Stockholm on Friday.
The Swedish economy is strong and inflation is rising. "The economy has developed in line with our forecasts from the monetary policy meeting in July. Inflation is rising due to the previous depreciation of the krona and in step with the strengthening of economic activity," says af Jochnick. But economic activity must remain strong if the upturn in inflation is to continue.
"Political uncertainty following the British referendum has not gone away. It is true that we expect the effects on Sweden to be limited, but, even so, there is a risk that economic development will be impaired," says af Jochnick. In Sweden, household indebtedness threatens to risk the long-term sustainable development of the Swedish economy. It is therefore important to address the causes of the build-up of debt through targeted measures in several policy areas.
