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Swedish cen banker says "considerable changes" needed for new rate cuts
March 9, 2016 / 8:23 AM / 2 years ago

Swedish cen banker says "considerable changes" needed for new rate cuts

STOCKHOLM, March 9 (Reuters) - It would take “considerable changes” in forecasts for the Swedish economy and inflation for the Riksbank to cut its main interest rate again, Swedish Deputy Central Bank Governor Cecilia Skingsley said.

Only last month, the Riksbank cut its benchmark rate more than expected to a record low level of -0.50 percent and said it was ready to do more to push up inflation to its 2 percent target.

The Riksbank has also repeatedly said that it is ready to intervene on the forex market if the crown strengthens too fast.

In an interview in Swedish daily Svenska Dagbladet, Skingsley said that she “could live” with a short term appreciation of the Swedish crown if it doesn’t worsen the economic outlook significantly.

“The tool of intervention is still on the table, but I want to use only when I‘m worried about the trend in Swedish economy,” Skingsley said.

Reporting by Johan Sennero

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