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Swedish central bank says fiscal policy, wages important for path ahead
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STOCKHOLM (Reuters) – How much Sweden’s central bank has to raise rates depends in part on wage negotiations and fiscal policy responses to the current inflation crisis, Deputy Governor Per Jansson said in regular testimony to parliament’s finance committee on Thursday.
STOCKHOLM (Reuters) – How much Sweden’s central bank has to raise rates depends in part on wage negotiations and fiscal policy responses to the current inflation crisis, Deputy Governor Per Jansson said in regular testimony to parliament’s finance committee on Thursday.
“The best scenario would be if we can return inflation to the target with relatively cautious rate increases,” he said in a statement released in conjunction with the hearing.
“But a lot also depends on the support for this development in price-setting and wage formation and the formulation of fiscal policy.”
(Reporting by Simon Johnson; editing by Niklas Pollard)
Monetary policy refers to the actions taken by a central bank to manage the money supply and interest rates to achieve macroeconomic objectives such as controlling inflation and stabilizing the currency.
Interest rates are the cost of borrowing money or the return on savings, expressed as a percentage. They are influenced by central bank policies and economic conditions.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. Central banks aim to control inflation through monetary policy.
Financial markets are platforms where buyers and sellers engage in the trading of assets such as stocks, bonds, currencies, and derivatives, facilitating capital flow and investment.
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