MNI BRIEF: Riksbank Jansson Downplays Likelihood Of Rate Hike

RIksbank Deputy Governor Per Jansson said Tuesday that a Swedish rate hike was not imminet but that the Executive Board had to be ready to act if inflation expectations were to become de-anchored.

In a speech at a Nordea event in London, Jansson said that the Swedish economy was showing signs of recovery and "we would like to continue to support it, if possible, but not at the cost of threatening credibility."

While the Riksbank's hiigh inflation scenario showed fairly rapid hikes Jansson said it was important not create unnecessary expecttations of imminent tightening but that they would act decisively if need be. On the recent economic data, he said "the recovery is coming in the numbers now, but it's not turbo charged" and he said recent activity data had been "shaky,"  while on inflation there were good reasons to believe that it would be transitory.

(See MNI INTERVIEW: Rapid Rate Move Up More Plausible-Riksbank Head )