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Sweden Flaunts Monetary Tools to Show It Can Beat Deflation

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Sweden’s central bank has the tools to take unconventional steps should they be needed to revive price growth, First Deputy Governor Kerstin af Jochnick said.

The bank “has a currency reserve, we have a bond portfolio, we have given credit to banks before, and can do what all central banks can do if there is a need,” she told reporters today in Stockholm. The first option will be to delay the timing of rate increases. “We’re not there yet,” she said.