Kerstin af Jochnick, Deputy Governor.
The economic development in Sweden looks positive and the Bank’s expansionary monetary policy continues to provide support to the rise in inflation. The state Governor Director Kerstin af Jochnick in the prescribed speech entitled “The monetary policy and the monetary policy situation” on Friday.
“As for the data received during the summer, both in Sweden and abroad, does it fairly well in line with what we anticipated in July. Economic growth in Sweden continues to look good out and the expansive monetary policy supports the upward trend in inflation. And it would take is a continued high willingness to do monetary policy even more expansionary, “said af Jochnick.
A new loan program for Greece may hopefully soon be finished, which gives hope that the recovery in the EMU can continue. The global economic developments since July brings a whole also supported the Riksbank’s assessment is that international growth will gradually strengthen. The view is that the weak growth in the first quarter was temporary.
A favorable factor mentioned is the sharp fall in oil prices, which are expected to have a positive impact on growth in countries that do not produce oil. It provides, among other things, higher level of consumption of countries, which could benefit global growth. Another factor is that the recent tightening fiscal policy in many mature economies look to be over. A third factor promoting the world economy is the expansionary monetary policy around the world.
“The Swedish economy has gradually improved due to better demand in the world – and inflation rising for some time,” says af Jochnick . The continued recovery in the world is expected to promote Swedish exports and growth in the future.
“For some time, inflation rises CPIF excluding energy and several indicators suggest that it will continue to rise” says Governor member.
Some uncertainty surrounding the global economy remain, however, and among the storm clouds mentioned that the funding crisis in Greece is not yet resolved and that the situation in Russia and Ukraine also creates continued uncertainty.
Global inflation is expected to rise in the future, after having been below target in many countries in recent years.
She emphasizes that it is important that monetary policy provides support to the upward trend in inflation to the inflation target remains a benchmark for prices – and pay.
“The interest rate needs to be very low if we are to avoid the dangers of an excessively low inflation. But at the same time, the low interest rates that other risks are built up which can create problems in the Swedish economy in the future “says af Jochnick on.
She notes that household debt and house prices are rising rapidly, which can make the Swedish economy vulnerable if economic activity would slow down.
It is considered to be very important for the Swedish economy that we get a lasting solution to the debt and house prices. The Government should, as part of this, ensuring that a functioning framework for macro-prudential oversight is developed and that the FSA gets a clear mandate to manage the oversight concludes Kerstin af Jochnick.
No comments:
Post a Comment