Riksbank Chief Calls for Cautious Easing to Avoid Demand Surge

The Riksbank should move gradually and cautiously as it takes borrowing costs lower to avoid spurring demand that could lead to renewed price increases, Governor Erik Thedeen said.

“We don’t want a very large demand boost and inadequate supply, akin to what we saw in the wake of the pandemic,” the governor said in an interview after a speech in Copenhagen on Monday. “That could prompt companies to increase prices again, as they have done in the recent past.”