Flodén at the Riksdag Committee on Finance. Hearing on monetary policy

Riksbank Governor Stefan Ingves and Deputy Governor Martin Flodén today visited the Riksdag Committee on Finance for the second hearing of the year on monetary policy.

Date: 28/09/2017 09:00

Speaker: Deputy Governor Martin Flodén

Place: Skandiasalen, the Riksdag, Stockholm

Mr Ingves began by describing the Riksbank's work to safeguard the role of the inflation target as anchor for price-setting and wage-formation in Sweden: "We have acted purposefully in our monetary policy. After a long period with inflation below the target, we are now back at 2 per cent and we have good economic activity in Sweden. Monetary policy needs to remain expansionary for inflation to continue to be close to the target."

When economic activity is strong, there are often warnings of overheating. But it is difficult to see any clear signs of this right now, said Martin Flodén in his introduction: "Prices and wages are increasing only moderately, households are saving a lot and we have a surplus on the current account."

On the other hand, both Mr Flodén and Mr Ingves are concerned over developments in the housing market and in household indebtedness. Debt has been increasing over a long period of time, and did so even when interest rates were higher. The Riksbank considers there is a need to combine measures from different policy areas to correct these problems and achieve a sustainable long-term development of the Swedish economy.

Follow the adjacent link to see the slides Mr Flodén used at the hearing.

Updated 05/01/2018