Riksbank Won’t Tolerate More Price Shocks, af Jochnick Says
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Sweden’s Riksbank will need to ease monetary policy further should prices continue to fall more than policy makers forecast, First Deputy Governor Kerstin af Jochnick signaled.
“At these low levels it’s important that we end up at roughly the forecasts we’ve made,” she said in an interview on April 25, after a speech in Sundsvall, Sweden. “We’ve received data which was significantly lower than our forecast, so the tolerance for even lower inflation data is pretty small.”