“We have a very low inflationary pressures and declining inflation expectations,” said Dillén at a press briefing on Thursday.
“In addition, other central banks, such as Switzerland, have gone before and shown that one can have negative interest rates. Riksbank should cut interest rates so that it becomes slightly negative, “he said.
He said it would be good to begin with a minor decrease and then evaluate the effects of it.
“It’s hard to know what is required. It will probably not enormous impact of a somewhat negative policy rate, but it can help a little bit,” said Mats Dillén.
“Switzerland has gone before and shown that you can be in negative territory.”
Par Österholm, director of real economic analysis at NIER.
He also said that the next bargaining round is important that the low inflation expectations are not permanent.
Par Österholm, director of real economic analysis at NIER, said that the probability has increased for the Riksbank to cut the repo rate again.
“Switzerland has gone before and demonstrated that it may be in negative territory. There are opportunities to marginally go into negative territory. One can also imagine quantitative easing, “he said.
In contrast, believe KI is not that the Riksbank will with any interventions in the foreign exchange market.
Par Österholm said that with low inflation and low and declining inflation expectations Riksbank should do more.
“It’s something you should take seriously,” he said, adding that in the short term, the decline in oil prices also put downward pressure on inflation.
The rising housing prices are in other scales, but the repo rate is not great tool to subdue them. Instead, macro-prudential measures and increased construction.
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