Flodén at the Riksdag Committee on Finance: Monetary policy needs to be sustained

The Swedish economy has recovered rapidly in the pandemic, supported by extensive economic policy measures. This comment was made by Governor Stefan Ingves in his introduction, when he and Deputy Governor Martin Flodén today took part in the second hearing of the year at the Riksdag Committee on Finance.

Date: 19/10/2021 09:30

Speaker: Deputy Governor Martin Flodén

Place: Committee on Finance, Sveriges Riksdag

Deputy Governor Flodén also focused on inflation in his introduction. “In light of inflation having been below 2 per cent for many years, the fact that it has now risen is a welcome development. This may help to ensure that inflation expectations are not too low and strengthen confidence in the inflation target,” said Martin Flodén. "Inflationary pressures are not very strong, which indicates that the upturn is transitory. However, I think that the risks of inflation being higher than in our forecast have increased. We need to monitor continuously how high energy and producer prices affect other prices, inflation expectations and wages,” he concluded.

Updated 19/10/2021