Swedish central bank governor standing by for web-chat, Twitterview
Stefan Ingves, head of Sweden’s central bank, is set to take questions via a web-chat and Twitter at CET 13.30 today, following this morning’s announcement that the key interest rate is to remain unchanged for now at 1.25%, but could edge lower over the winter.
The Twitter handle is @riksbanken, according to a note on the Sveriges Riksbank website.
Questions can be put to Ingves (pictured) through the following web page: http://www.riksbank.se/sv/Press-och-publicerat/Chatt/Chatt-med-riksbankschef-Stefan-Ingves-den-25-oktober/
The bank today said that it was keeping interest rates unchanged in order to stimulate the economy to encourage inflation to rise to its mandated 2% level.
As part of its decision, the bank also said that it was now more likely that interest rates would be lowered through the winter, rather than raised. And even when the interest rate cycle changes, and rates start to go up, they are likely to be raised at a slower rate than previously suggested.
However, the bank sounded a note of warning, when it added that its expectations would have to go “hand in hand with an unchanged level of household debt.” The suggestion is that if household debt were to increase, then it would put pressure on the bank’s decisionmakers to once again alter policy, as the objective is to stimulate the economy through investments, and not facilitate increased leveraging at the household level.
The bank also stated that its new forecast path for interest rate changes was a “prognosis, not a promise”.
For 2013, the bank is forecasting a repo rate of 1.3%, down from 1.6% forecast in September. For 2014, the rate is set to be 1.9%, down from 2.3%.