Swedish currency to strengthen in the long run, Riksbank governor says

The Swedish currency will strengthen in the long run, Riksbank Governor Erik Thedeen said in the published summary of a speech on Friday. "In the short term and perhaps also the slightly longer term, the exchange rate can vary in a way that only has a weak link to developments in the real macroeconomy, for instance, it may weaken over a relatively long period of time," Thedeen said.

The Swedish currency will strengthen in the long run, Riksbank Governor Erik Thedeen said in the published summary of a speech on Friday.

"In the short term and perhaps also the slightly longer term, the exchange rate can vary in a way that only has a weak link to developments in the real macroeconomy, for instance, it may weaken over a relatively long period of time," Thedeen said. "When the krona is weak, it becomes more difficult to bring down inflation, which is worrying. But Sweden's economy is essentially sound and well-managed. This indicates that the exchange rate will strengthen in the long run," he said.

The central bank on Thursday raised

its key policy rate by a quarter percentage point to 4.00%, as expected, and said it might need to do more to bring inflation back to its 2% target.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)