MNI BRIEF: Riksbank Minutes Show Door Ajar To Another Cut

The minutes of the Riksbank Executive Board's August meeting showed that all five members voted to leave the policy rate unchanged at 2% and that a 25-basis-point cut this year is on the cards, although there were concerns over recent elevated inflation.

Governor Erik Thedeen said there was considerable uncertainty over the anticipated economic recovery and that 'there is thus reason to leave the door ajar to one further cut in the interest rate."

Deputy Governor Anna Seim was wary of upside inflation risks but, like First Deputy Governor Anna Breman, still saw "some probability of a further cut this year"  while their colleague, Aino Bunge, stressed the need for vigilance over inflation.

Deputy Governor Per Jansson said that it was "probably desirable ...to give a little more support to economic activity" and added that they should not "wait longer than necessary," supporting the markets' view that the cut could come in September.