Bloomberg News

Riksbank’s Jansson Says Rate Picture Is ‘Unusually Open’

May 25, 2012

Riksbank Deputy Governor Per Jansson said the picture is “unusually open” before the next interest rate meeting in July.

Policy makers may be shifting their views amid speculation Greece will need to leave the euro area. The Riksbank will look closely at European developments at its next rate meeting, Jansson said today after a speech in Stockholm.

The Riksbank last month left its main rate unchanged at 1.5 percent, after cutting twice since December, and said it discerned some “positive signs” in the $500 billion economy. The bank also anticipated an unchanged rate over the next year.

The largest Nordic economy is fighting to avoid a recession as Europe’s debt crisis saps demand for its goods and services. Sweden, which sends 70 percent of its exports to Europe, will probably see its economy expand 0.6 percent this year, though there may be need for “discretionary stimulus” should the crisis worsen, the Organization for Economic Cooperation and Development said May 22.

To contact the reporter on this story: Johan Carlstrom in Stockholm at jcarlstrom@bloomberg.net

To contact the editor responsible for this story: Jonas Bergman at jbergman@bloomberg.net


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