Riksbank officials signal another interest rate hike could come as early as December

The five members of the Swedish Central Bank’s Executive Board, including Governor Erik Thedéen, support the interest rate path set at the September meeting, meaning they expect further monetary tightening through interest rate increases to be needed.

However, they do not completely agree on the timing.

Deputy Governor Per Jansson believes that, despite the November increase, it may be time for the next rate increase as early as December.

He is partly supported by Anna Seim, who sees the rate increases now under way as “a natural part of a normal economic cycle”, in which less expansionary monetary policy is needed to prevent the economy from growing too quickly and creating a more serious inflation problem.

“Acting early, I believe, reduces the risk that we need to act more forcefully later,” she says, according to the minutes.