Krona Gains After Riksbank Calls Conference to Discuss Mandateby
Sweden’s krona strengthened after the Riksbank sent an invitation to a conference on a “new discussion” about central banks’ core operations and mandates.
The “Rethinking the Central Bank’s Mandate” seminar will take place on June 3-4 in Stockholm, according to an invitation sent by Deputy Governor Cecilia Skingsley. Governor Stefan Ingves, Linda Goldberg of the Federal Reserve Bank of New York, Loretta Mester of the Federal Reserve Bank of Cleveland and Svein Gjedrem, former Governor of Norges Bank, will be among the speakers.
“Developments in the world economy and in financial markets in the past few years motivate a new discussion about the central bank’s core operations,” Skingsley said in the invitation. “The purpose of the conference is to give an overview of current questions and topics from leading international experts in order to provide new insight and inspiration for a continued discussion about the operations and mandates of central banks.”
The krona appreciated as much as 0.2 percent to 9.141 per euro and traded up 0.2 percent at 9.149 as of 3:36 p.m. in Stockholm.
Debate is swirling over whether the Riksbank’s mandate should be changed following a report co-authored by the former head of the Bank of England Mervyn King, who argued that the bank should sometimes be given more time to reach its 2 percent inflation target than the current two-year horizon. King also proposed changing the bank’s inflation gauge. Skingsley last week voted against the Riksbank majority, which opted to expand its unprecedented government bond purchases.