Cecilia Skingsley, Deputy Governor of the Swedish central bank (Riksbank), said that data since July’s policy meeting came in line with their forecasts.
Additional takeaways
“Buying corporate bonds will have a stabilizing effect on the market.”
“Cannot conclude that the Swedish corona strategy was responsible for a better outcome for GDP in Q2.”
“Cannot draw any big conclusions in monetary policy terms from recent inflation outcomes.”
“It is possible to cut rates below zero again.”
“The experience with negative rates we have had was good.”
“Long-term inflation expectations seem stable but cannot guarantee they will remain so.”
“Don’t see a reason for hasty rate hikes even if inflation surprises on the upside.”
“Swedish crown has strengthened quite quickly.”
“Crown is just one factor among many we take into consideration.”
“Cannot see any reason why we wouldn’t complete our asset purchase programme as outlined.”
Market reaction
Despite these dovish comments, the EUR/SEK pair retreated modestly from highs and was last seen gaining 0.52% on the day at 10.3362.
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