Martin Flodén visits Västerås
"We can see that monetary policy is having an impact as the economy is growing stronger and inflation is on the way up. The Riksbank's interest rate cuts are a major reason behind the positive developments in the Swedish economy. We will continue to conduct an expansionary monetary policy to ensure that inflation keeps rising towards the target.”
This comment will be made by Deputy Governor Martin Flodén during his visit to Västerås on Wednesday. He is there to talk about the economic situation and the most recent interest rate decision at various locations, including a seminar at SEB and a lecture at Mälardalen University.
Mr Flodén will also emphasise that the inflation target is good for the Swedish economy as it guides price and wage formation and thereby creates stability and predictability. He will also explain that confidence in monetary policy and price stability cannot be created by changing the target as soon as it becomes challenging to attain it.
In terms of the risks which accumulate in connection with the low interest level, Mr Flodén will point out that the Riksbank has been seeking measures within other policy areas for several years. These include fundamental reforms to the housing market with the aim of creating a better balance between supply and demand, and dampening the rise in household debt via macroprudential policy measures. Mr Flodén will also point out that higher inflation is needed to raise the interest level lastingly.
Follow the link to see the slides shown by Martin Flodén during his presentation at SEB.
When the Monetary Policy Reports are published in the spring and autumn, members of the Executive Board visit different areas in Sweden and present the monetary policy decisions. The members then give presentations and meet representatives of the business sector, local government, media and higher education institutions in the area.