MNI BRIEF: Riksbank's Head Sees Growth Pick-Up, Rates On Hold

There were a number of factors pointing to an acceleration in Sweden's growth from currently subdued levels, Riksbank Governor Erik Thedeen told lawmakers on the Finance CommitteeTuesday, adding that the most recent guidance that the bank's view was that "interest rates will remain at this level for some time."

The Swedish central bank has been at the front of the pack in easing monetary policy this cylce, cutting the policy rate to just 1.75%. Thedeen said that while inflation has been somewhat elevated they felt more confident that it was coming down and had eased to support the economy.

The lower interest costs, rising real wages and increased disposable income all create the conditions for stronger economic activity, with signs consumption is rising and business output rising, Thedeen said. The next policy decision will be announced on November 5, with a pause widely expected. 9see MNI INTERVIEW: Riksbank Head -Equal Chance Next Move Cut, Hike )