By Reuters Staff
1 Min Read
STOCKHOLM, Feb 23 (Reuters) - Sweden’s central bank could cut the benchmark rate or expand its asset purchase programme if it needs to make policy looser to ease the economy through the pandemic, Deputy Governor Anna Breman said on Tuesday.
“If more monetary policy stimulus were to be required in the short term, the tools Anna Breman sees closest to hand are a negative repo rate and increased quantitative easing,” the Riksbank said in a summary of her speech. (Reporting by Simon Johnson; editing by Niklas Pollard)
TALLINN (Feb 23): Sweden’s central bank must be ready to innovate if monetary policy needs to be more expansionary, and shouldn’t rule out new tools from helicopter money to deeply negative interest rates, Deputy Governor Anna Breman said. “Current monetary policy is not necessarily appropriate in a changing society,” Breman said in a webcast speech on Tuesday.
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(Bloomberg) Sweden’s central bank must be ready to innovate if monetary policy needs to be more expansionary, and shouldn’t rule out new tools from helicopter money to deeply negative interest rates, Deputy Governor Anna Breman said.
“Current monetary policy is not necessarily appropriate in a changing society,” Breman said in a webcast speech on Tuesday. “We need to be open to innovation and new thinking.”
While the speech echoes comments from Governor Stefan Ingves that the Riksbank may need to embrace more unconventional measures in future, Breman’s remarks include one of the most specific discussions yet seen from an advanced-world central banker on barely tested boundaries of monetary policy. She didn’t come to any firm conclusions, however.