Swedish c.bank's Floden says downside risks to inflation still dominate

Downside risks to the central bank's inflation forecast still dominate, despite a pick up in prices and expectations, Deputy Governor Martin Floden said on Monday. It is harder to try to create higher inflation if inflation expectations begin to fall."

Downside risks to the central bank's inflation forecast still dominate, despite a pick up in prices and expectations, Deputy Governor Martin Floden said on Monday. "Because inflation has been so low for so long and because inflation expectations cannot be said to be so high, I would say that the risks on the downside still dominate," Floden told reporters.

"They (downside risks) are also a bit more difficult to deal with. If inflation begins to rise, we have good tools to use. It is harder to try to create higher inflation if inflation expectations begin to fall."