February 28, 2011 / 8:49 AM / 7 years ago

Two Swedish cbankers see 50 bps hike chance-minutes

STOCKHOLM, Feb 28 (Reuters) - 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]

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