VISBY, Sweden (Reuters) - Inflation is back on target and the Riksbank should be able to begin raising rates towards the end of the year if the economy develops as expected, central bank Deputy Governor Cecilia Skingsley said on Wednesday.
“We have been determined to bring inflation back to the target and now we are there, and now we are going to normalise rates in a gradual and responsible way,” Skingsley told reporters.
The Riksbank’s plans could be affected if the economy does not develop as expected.
“Then it would be possible, although not automatic, that we would also need to change the repo rate path,” she said.
The Riksbank on Tuesday held its benchmark rate unchanged at -0.50 percent and stuck with a forecast it would start to hike rates towards the end of the year.
Reporting by Johan Sennero; Editing by Simon Johnson