It’s “too early to change direction in monetary policy,” Riksbank’s Governor Stefan Ingves said following the monetary policy decision announced earlier on.
Inflation expectations are around 2%, which is good.
Inflation pressure is still too low.
Aims to keep asset portfolio at roughly same level in 2022, replace bonds that mature.
Sweden has good possibilities to do more both on fiscal and monetary policy side if it were needed.
Not big worry if inflation were to be over 2% for a time.
The Swedish central bank held interest rates at 0.000%, as widely expected, and pledged to continue to buy securities with an envelope of SEK700 billion.
The Swedish krona (SEK) spiked to daily highs of 10.11 against the euro on the policy announcement before reversing sharply to the lows at 10.1538.
At the time of writing, EUR/SEK rises 0.30% to 10.1460.
