Topically Swedish - The Central Bank Target

Is the Swedish Central Bank, the Riksbank, sliding from its inflation-rate targeting? Or will it have to cut the repo-rate in the face of the currently low inflation despite the central bank governor's strong and pronounced bias towards hiking rates? This is the topical discussion after recent decreases in market expectations in the future repo-rate in the wake of the Governor's speech last week.

Sveriges Riksbank - Low inflation, but outlook remains largely the same: "The fact that I did not advocate further or larger interest rate cuts was not merely due to the expectation that inflation would be in line with the target two years ahead; it was also due to the strong growth in demand. The Riksbank has explained on previous occasions that it is reasonable to take some account of developments in the real economy, both because these say something about inflation in the longer term and because a stable real economic development is important in itself. "

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