Economics
Elusive Inflation May Extend Sweden’s Negative Rate Era
- Swedish market braces for key reports on inflation this week
- Policy makers are struggling to exit negative interest rates
This article is for subscribers only.
Central bank policy makers in Stockholm could soon be forced to follow a growing number of their colleagues abroad in abandoning plans to tighten as inflation is starting to fade.
A key report at the end of this week is predicted to show that Swedish inflation once again fell below the 2% target, and is even slower when energy prices are factored out. An initial alarm could sound already on Wednesday, when Governor Stefan Ingves and his colleagues will get feedback on whether inflation expectations are continuing to weaken.