Swedish can use all tools if recovery hits trouble, minutes show

STOCKHOLM, Oct 1 (Reuters) - Sweden’s economy is recovering from the effects of the pandemic, but there are risks ahead which may require the central bank to use all its tools in the fight, the minutes of the Riksbank’s September policy meeting showed on Thursday.

“If there is a need for more monetary policy stimulus, further expansion of the balance sheet remains an important tool,” the central bank said in a summary of the meeting.

“Several members pointed out that the scope for cutting the policy rate is limited but that such a measure cannot be ruled out.”

The Riksbank left policy unchanged on Sept. 22. (Reporting by Stockholm Newsroom; editing by Niklas Pollard)