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Swedish Central Bank Seen Readying Changes to Inflation Regime

  • Changes considered to price gauge, introducing tolerance band
  • Bank says important change is well received by market
Sweden's Central Bank in Stockholm.

Sweden's Central Bank in Stockholm.

Photographer: Casper Hedberg/Bloomberg
Updated on

There’s growing speculation Sweden’s central bank will reintroduce an interval for its inflation target as well as change its price index, paving the way for it to start rolling back the record stimulus unleashed over the past two years as it battled deflation.

“Stefan Ingves began talking about this in spring,” said Torbjoern Isaksson, chief analyst at Nordea Bank. “That a central bank governor again and again talks about a reintroduced tolerance band is a clear signal that it could happen.”