Riksbank's Floden: Economic developments have been surprisingly positive

Riksbank’s Deputy Governor Martin Flodén said on Monday that economic developments in Sweden have been surprisingly positive, as reported by Reuters.

Additional takeaways

"Most recent rise in inflation is not a surprise."

"A lot of uncertainty and volatility in inflation figures."

"Inflation is expected to be strong for a few months and then fall back again."

"The plan is to use the whole framework for asset purchases."

"The possibility that we will need more monetary policy stimulus now is less than we thought in November."

"A rate cut from the current level wouldn't have the same effect as a cut from a higher level."

"From a technical perspective, it would be possible to go slightly below -0.50% for the repo rate."

"The level of Swedish crown is not so remarkable at the moment."

"The crown has strengthened a lot and fast."

Market reaction

The EUR/SEK pair showed no immediate reaction to these comments and was last seen trading flat on the day at 10.0323.