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Bank Watchdog in Sweden Wants Rethink of Inflation Targeting

  • Swedish FSA says Riksbank can take longer to reach price goal
  • Existing policies adding to debt challenge in Sweden: FSA
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Sweden’s financial watchdog says the central bank should consider allowing itself more time to reach its inflation target as existing policies drive debt burdens and create a regulatory headache.

“There is a choice how quickly you should reach the inflation target,” Financial Supervisory Authority Director-General Erik Thedeen said in an interview in Stockholm on Monday. “Quick or not so quick. If you choose not so quick, the interest rate path would be a little bit higher.”