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Swedish c.banker Breman to do "what's necessary" to reach inflation target

·1-min read
Newly-appointed Swedish central bank governor Anna Breman attends a news conference in Stockholm

STOCKHOLM (Reuters) - Swedish Central Bank Deputy Governor Anna Breman said on Thursday she will not hesitate to vote for more rate hikes than currently forecast by the Riksbank if inflation rises more than predicted.

The Riksbank raised the benchmark rate by a quarter percentage point in April and forecast two or three more hikes this year with further tightening to come in 2023 as it tries to come to grips with surging inflation.

In the minutes of that meeting, Breman said she would have preferred fewer policy rate increases going forward than indicated by the Riksbank's rate path. She qualified that on Thursday saying it was important not interpret that as tolerance for higher inflation.

"If inflation goes even higher and becomes even more persistent than in our forecast, I will support doing what is necessary to attain the inflation target, including more rate hikes than are in the current path and/or a faster tapering of asset holdings," she said in a speech published on the Riksbank web page.

Swedish inflation in April, published after the Riksbank's rate decision, came in at 6.4%, higher than the central bank's forecast of 5.9% and much higher than its 2% inflation target.

(Reporting by Johan Ahlander and Niklas Pollard; Editing by Frank Jack Daniel and Niklas Pollard)

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