Deputy Governor of the Riksbank Anna Breman believes that the key interest rate needs to remain at a high level for a long time to keep inflation in check.
– We know that this is tough for many households, but we will need to have a continued tight monetary policy to stay on target when we reach it. Most households can handle more interest rate increases, she tells TT.
She emphasizes that there are “individual households that are having an extremely tough time” but believes that they will benefit from inflation going down. The Riksbank is expected to raise the policy rate again in September.