Riksbank Minutes Vigilance

Nordea reviews the Riksbank's May meeting minutes, which reveal a cautious but vigilant central bank keeping rates at 1.75%. While current inflation is low, the bank warns of potential hikes if Middle East supply shocks persist or the exchange rate weakens.

Key Takeaways

• 1.The Riksbank maintained the policy rate at 1.75% during its May meeting, opting for a 'wait-and-see' approach amid low current inflation but rising future risks.
• 2.Global supply shocks, particularly from the war in the Middle East, have increased the risk of higher inflation and potential stagflation.
• 3.The Executive Board is divided between a more hawkish stance (Thedén, Seim) and a more patient approach (Bunge, Hjelm, Jansson).

Table of Contents

• Riksbank minutes: Vigilance
• DISCLAIMER

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