STOCKHOLM, Feb 23 (Reuters) - Sweden’s central bank is increasingly concerned about developments in inflation, which could delay its first rate hike since 2011, the minutes of the latest policy meeting showed on Friday.
“The downward revision (to inflation) prior to today’s meeting is of such a size that I have asked myself whether shifting the repo rate path towards postponed rate rises would be a better balanced monetary policy,” Deputy Governor Cecilia Skingsley said. She nevertheless supported an unchanged rate path.
Her caution was supported by several other rate-setters.
The Riksbank kept both rates and its rate path forecast unchanged on Feb. 14, but cut its forecast for inflation for both this year and next. (Reporting by Stockholm Newsroom; Editing by Simon Johnson and Robin Pomeroy)