Riksbank’s Bunge warns weak krona boosts inflation

Deputy governor stresses monetary policy is working, but risks persist

SKr1,000 banknotes

Higher interest rates in Sweden are succeeding in taming inflationary pressures, but a weak exchange rate continues to threat price stability, Sveriges Riksbank deputy governor Aino Bunge said on December 11.

“Monetary policy is working and inflation is on the way down,” she said in a speech at the Swedish Association of Corporate Treasurers in Stockholm. “But it is much too early to say that we are done fighting inflation. There is still a risk for setbacks and a weak krona is part of this.” 


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