STOCKHOLM Feb 28 Two Swedish central bankers
said the Riksbank could raise rates by more than 25 basis points
at a meeting this year if inflationary pressures rise, minutes
of the last policy meeting showed on Monday.
Governor Stefan Ingves said that the Riksbank expects
moderate wage increases and a limited rise in labour costs, but
if these turn out higher than forecast, there is a risk
inflation will accelerate.
"If this happens, Mr Ingves explained that he would not be
unsympathetic to raising the repo rate by more than 0.25
percentage points at one meeting," it said in the minutes.
First Deputy Governor Svante Oberg said if inflation is
higher than expected, the Riksbank may need to hike by "by more
than 0.25 percentage points at one or more meetings."
The Riksbank announced a rate rise for the fifth meeting in
a row on Feb 15, adding that it expected to have to up the
planned pace of rate hikes ahead as the economy continues to
surge ahead. [ID:nLDE71E0L2]