Different views in the Swedish
Photo: Pär Bäckström/TT

Different views in the Swedish Central Bank on how the Iran war affects inflation risks

There is some disagreement among the Swedish Central Bank's Executive Board over how to handle inflation risks resulting from supply disruptions caused by the war in Iran.

Once we see clear inflationary effects in the data, it is in all likelihood too late, and my view is therefore that we may need to act before we see clear signs of more persistent inflation in incoming statistics, said Deputy Governor of the Swedish Central Bank, Anna Seim, according to minutes from the Swedish Central Bank's interest rate meeting last week.

First Deputy Governor of the Swedish Central Bank, Aino Bunge, is more cautious.

I think we have quite a bit to gain from acting 'preventively' on the supply disruptions we are now seeing, she said.

The Swedish Central Bank left the key interest rate unchanged at 1.75 percent at the meeting.

It is still too early to determine whether a rate change is needed, but the readiness to adjust the rate is high, said Riksbank Governor Erik Thedéen.

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AuthorTT News AgencyEnglish edition by Sweden Herald, adapted for our readers

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