Central Bank Chief: Opens Up for Further Rate Cuts

The weak inflation trend opens the door for a faster reduction of the interest rate. This is the opinion of Vice Governor of the Central Bank Per Jansson according to the protocol.

» Updated: October 04 2024

» Published: October 01 2024

Central Bank Chief: Opens Up for Further Rate Cuts
Photo: Magnus Lejhall/TT

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At the latest interest rate meeting, the Swedish Central Bank chose to lower the interest rate by 0.25 percentage points, but simultaneously flagged a double-sized reduction in November or December.

This is also a line that Per Jansson, traditionally considered one of the more dovish in the direction, can now see according to the protocol. Per Jansson's opinion is that they "open the door to being able to lower the interest rate a little more and faster than we previously thought". He also notes that the inflation risk has decreased significantly.

"The development speaks in favor of the risks of inflation becoming too high having decreased quite significantly and gives us greater confidence to move forward a bit more decisively with our monetary policy easing", he says.

Riksbank Governor Erik Thedéen simultaneously notes that there is a possibility of a 0.5 percentage point reduction at one of the two remaining meetings.

"Even though we have recently seen that our forecasts have largely been correct, we should be humble; the situation can change quickly", notes Thedéen, however.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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