RIKSBANK: Won't React To Small, Single-month Falls In Inflation Expectations

Q: How long can inflation fall below target before you become uncomfortable? What will happen when/if the food VAT cut expires?

A: We operate a flexible monetary policy, so can look through these temporary deviations from target. We are not “inflation nutters”, we look at the forward-looking picture. 

Q: Question from MNI: To what degree are you concerned about inflation expectations due

A: My expectation will be that expectations will remain well-anchored. We won’t react to small, one-month falls in expectations. But if we see a sustained fall in expectations, that would be something we need to react to. 

Press conference concludes.