Sweden's Riksbank published remarks by Deputy Governor Anna Seim from an evening seminar in Eskilstuna organised by Consensus Asset Management, where she set out the central bank’s assessment of the economy and current monetary policy. After cutting the policy rate by 1.75 percentage points over nine months, she argued the rate is now at a level that appears consistent with inflation being at target in both the short and long term. Seim noted that it takes time for rate cuts to have their full effect and said the current stance should be able to handle either weaker-than-expected domestic consumption and GDP growth or inflationary impulses from supply shocks linked to global tensions. She added that the Riksbank remains prepared to adjust monetary policy if the outlook for inflation and economic activity changes, and she also visited COOP’s new warehouse and met local entrepreneurs at a lunch organised by the Mälardalen Chamber of Commerce.
Riksbank 2025-02-11
Sweden's Riksbank deputy governor outlines monetary policy stance after 1.75 percentage point rate cuts
Sweden's Riksbank Deputy Governor Anna Seim stated that the central bank's recent policy rate cuts, totaling 1.75 percentage points over nine months, align with inflation targets. She emphasized the current rate's capacity to manage domestic economic fluctuations and global supply shocks, while affirming the Riksbank's readiness to adjust policy if necessary.