BRUSSELS (MNI) – Sweden’s monetary policy is currently supporting
economic recovery but is gradually being normalised, Riksbank Deputy
Governor Svante Oberg has said, according to the text of a speech
delivered on Friday.
His comments indicated that the central bank’s stance hasn’t
changed since it raised its key repo rate to 0.5% from 0.25% at its last
policy meeting.
At that meeting, the Riksbank said it would gradually raise rates
towards a more normal level and gradually withdraw liquidity support.
“Monetary policy is still aimed at supporting the recovery in the
economy, but a normalisation has begun,” Oberg said in the speech
delivered at Swedbank in Stockholm.
“According to the assessment we made in June, the normalisation
process will continue gradually through interest rate adjustments and
the maturity of fixed rate loans,” he said.
“The Swedish economy is currently developing strongly, after
suffering a deep recession. Inflationary pressures are low, but are
expected to rise as resource utilisation increases,” Oberg said in the
speech,
“The new information we have received over the summer largely
supports the picture of the recovery in the world economy continuing,”
he said.
“There are some signs of weakness in the United States and Asia,
while Europe looks slightly stronger than expected,” he added.
The deputy governor said the unease on the financial markets has
waned, “but the situation is still not normal.”
“The new information also points to a continued recovery in the
Swedish economy,” he said, but cautioned that the Riksbank won’t change
its assessment of economic developments until the next monetary policy
decision on September 1.
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
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