STOCKHOLM: Swedish Riksbank Deputy Governor Karolina Ekholm said on Monday the Swedish crown could appreciate more than the central bank's forecasts currently suggest, meaning slower rises in interest rates ahead.
Ekholm said the gap between Swedish interest rates and those of key central banks in other regions is likely to remain wider than the main forecast by the Riksbank.
"This could mean that the krona will appreciate more than the forecast suggests," she said in the text of a speech published on the Riksbank's website.
"As a stronger krona dampens both inflationary pressures and resource utilisation, I believe that a lower repo rate path than that decided upon would lead to better target fulfilment."
The next Swedish interest rate announcement is due on April 20, a day after a central bank meeting.
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