May 11, 2020 / 12:53 PM / 14 days ago

Swedish's Jansson: inflation expectations key to rate policy

STOCKHOLM, May 11 (Reuters) - A significant fall in long-term inflation expectations in Sweden would be a key factor in deciding whether to cut interest rates, central bank Deputy Governor Per Jansson said on Monday.

Should the effects of the pandemic lead to a big drop in long-term inflation expectations, “that would be an example of a factor which definitely would be important for me in terms of rate policy,” Jansson said in an online discussion.

“If it is clear that this is being interpreted as a temporary disruption ... then I see less reason to react with rates.” (Reporting by Simon Johnson; editing by Niklas Pollard)

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