Riksbank's Jansson says probability of raising repo rate is "very low"
Sweden's central bank out with latest Minutes 23 Feb
- important to proceed with caution
- several members expressed concern over inflation and emphasised downside risks
- the conclusion I draw is that current picture for inflation fairly bright
A majority in the Executive Board supported the picture of the cyclical and inflation outlook described in the draft monetary policy report. The business environment is increasing steadily, and in Sweden growth is high, the labor market is strong and inflation close to the target of 2 percent.
However, the inflation forecast has been revised down slightly for the coming year, due to the fact that inflationary pressures and wages have developed weaker than expected. It was found that a prerequisite for inflation stabilizing close to 2 percent is that monetary policy is still expansive.