STOCKHOLM, Sept 4 Sweden's economy will face an
unusual situation in 2016 and 2017 with inflation around the
Riksbank's 2 percent target and normal growth combined with a
rate level lower than seen historically, central bank governor
Stefan Ingves said on Thursday.
"As far as I know, it is a combination of normality and a
rate level ... we haven't had before," Ingves told reporters.
However, he said that the Riksbank's assumption of a neutral
rate level remained at around 4 percent.
Earlier in the day, Sweden's central bank kept its key
interest rate unchanged at 0.25 percent as expected and stuck
with its previous forecast that it would start to tighten policy
at the end of next year.
(Reporting by Stockholm Newsroom, editing by Mia Shanley)