There is no target for SEK – Riksbank’s af Jochnick

Kerstin af Jochnik, Deputy Governor of the Riksbank has ruled out any target for the Swedish Krona, suggesting that the Nordic central bank has still room to purchase government bonds if needed.

K. af Jochnick also defended the implementation of inflation target by the Riksbank, stressing that prices are not only lower but also more stable. She argued that inflation is expected to increase in the future following rising inflation expectations and strong economic fundamentals.

At his Hearing on Monetary Policy before the Committee on Finance, Riksbank's Governor Stefan Ingves highlighted the central bank keeps intact its challenge to maintain ‘inflation and growth higher than the European average’. He also defended the current expansionary monetary policy when comes to spur economic growth and tackle the risks of ‘excessively’ low inflation.