Swedish central bank prepares to act over strong currency

Sweden’s central bank governor Stefan Ingves has issued a warning that the Riksbank may intervene in currency markets if the krona continues to appreciate against other currencies, given the risk this poses to the bank’s inflation targets.

“The recent appreciation in the Swedish krona creates risks for the upturn in inflation. If the exchange rate strengthens earlier and more rapidly than forecast, it will be more difficult to push up inflation towards the target. The Riksbank is therefore highly prepared to intervene on the exchange market whenever we deem it necessary,” Ingves (pictured) said.

The Riksbank inflation target is currently set at 2%, but the rate has been undershooting this target for what it calls “a relatively long period of time”. The bank has no official exchange rate target.

 

ABOUT THE AUTHOR
Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 16 years he has been based in London writing about funds and investments . From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope.

Read more from Jonathan Boyd

preloader
Close Window
View the Magazine





You need to fill all required fields!