Anna Seim describes two main scenarios in a speech in Västervik on Wednesday morning, according to a press release from the Swedish Central Banken.
Falling demand due to all uncertainty can push down inflation. But disruptions on the supply side, which can create shortages of production and consumer goods, can on the other hand push up prices.
"If inflation becomes lower or higher in the future depends on which of these forces that dominate. In the background, there are also among other things effects of increased defense efforts, a possible influx of Chinese goods on the European market and sharp turns in financial flows", according to Seim.
The Swedish Central Banken left the repo rate unchanged at 2.25 percent at the meeting at the beginning of May, but opened up for the possibility of a cut this year.
The next interest rate decision will come on June 18.
