Swedish c.bankers see no urgent need to tighten policy, minutes show

Sweden's central bank left policy unchanged at its latest meeting, arguing that currently above-target inflation would ease back next year but penciling in its first rate hike since the COVID-19 pandemic struck for the end of 2024.

The recent uptick in inflation is seen as mostly temporary and there is no urgent need to tighten monetary policy, the minutes of the most recent policy meeting of Sweden's central bank, published on Monday, showed. "With our history of low Swedish inflation, monetary policy needs to remain focused on ensuring that inflation develops persistently in line with the inflation target," Governor Stefan Ingves said in the statement.

"This will be done through a combination of a zero interest rate and a gradual and cautious reduction of our balance sheet measures," he added. Sweden's central bank left policy unchanged at its latest meeting, arguing that currently above-target inflation would ease back next year but penciling in its first rate hike since the COVID-19 pandemic struck for the end of 2024.

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