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Bloomberg said that disagreement over whether Swedish unemployment should guide policy instead of imbalances in the housing market is deepening a rift at the Riksbank less than a week before its six-member board decides on interest rates.
The central bank is due to announce its next decision on October 25. It is expected to leave its benchmark repo rate unchanged at 1.25 percent.
However, board members have voiced opposing views on what should determine Sweden’s monetary policy trajectory, Bloomberg said.
In an opinion piece in Swedish newspaper Svenska Dagbladet, Governor Stefan Ingves responded to “voices” that have called for the “lowering of an already very low rate” and argued that he “can’t just act in a short-term perspective.”
Sweden’s krona has became "the new Swiss franc" for investors seeking higher interest rates in a growing economy that has a trade surplus and falling debt load.
Last Updated (Monday, 22 October 2012 15:02)