Annika Winsth, Chief Economist at Nordea:
– It is a wise decision. It is good for Sweden that a person who goes to the Riksbank knows Finansinspektionen well. Erik Thedéen is an experienced person who has been involved for a long time, both politically and at the Swedish Financial Supervisory Authority. It creates great opportunities to have favorable conversations with society at large, so it is a wise decision. We have had challenges from time to time in the tone of conversation between the Riksbank and the Swedish Financial Supervisory Authority, so I think the election is successful.
How do you think the Riksbank will change with Erik Thedéen as head?
– It depends on how the situation develops. We have high inflation and we need to take measures for that. At the same time, Erik has solid expertise in the housing market from Finansinspektionen’s perspective. If it is somewhere there is a risk if you raise the interest rate too much in Sweden, it is for the housing market. He has a good idea of how it works. It will be a strength. Then how much he can change in this particular situation is hard to say today. We are also dependent on how the other central banks act, there are many who are raising interest rates a lot now.
Annika Winsth sees it as positive that a person with broad and long experience is chosen.
– I have many times argued that we should have a senior person for these positions, not least now when everything is moving but also because if you always have people who want to move on in the career, there are challenges in it. He has a long experience, it is a message of strength.
Robert Bergqvist, Chief Economist at SEB:
How do you view the message?
– It was a little surprising. I thought Sweden would have its first female Governor of the Riksbank. Those thoughts were a bit cloudy when Deputy Governor Cecilia Skingsley left the Riksbank, but I still thought it was time for a woman. At the same time, I must say that Erik Thedéen is an incredibly good choice in terms of his background, which is solid. It fits like a glove to become Governor of the Riksbank. I worked with him once upon a time at the Riksbank, so he is not new to that institution. I perceive him as an incredibly competent person in every way and think it is a very good choice by the Riksbank’s General Council.
What does this mean for monetary policy?
– I think one should keep in mind that the Riksbank has already changed direction in terms of monetary policy. Erik does not have to go in and express a new opinion and push it in another direction. The Riksbank’s direction of travel is to raise the interest rate and probably try to raise the Riksbank’s policy rate to approximately two percent. If I try to interpret Erik Thedén’s monetary policy compass, I think he very well supports the orientation that monetary policy needs to be less expansionary and that we also have an inflation problem in Sweden.
Will the Riksbank change in any way?
– I think he fits in well with the monetary policy analysis that the Riksbank already has. I find it difficult to see that one should believe in any other direction of travel when Erik Thedéen is the Governor of the Riksbank. I think it is important that the Riksbank has expertise both in the area of monetary policy and in financial stability. And now you get the financial stability as well.
Robert Boije, Chief Economist at SBAB:
– I think it’s a good decision. I have worked with Erik at the Ministry of Finance, he is a wise person with high analytical ability and I think he is a good manager. It was a great choice.
How will the Riksbank become with him as head?
– I think the choice of Erik Thedéen as head will be good both for the staff at the Riksbank and for the Riksbank’s financial analysis.
Will there be any changes?
– There are six decision-makers who may have slightly different views. But do not exaggerate the influence the Governor of the Riksbank has among the six people.
– It is a challenging time for monetary policy. There is a risk that we will enter a situation where inflation rises at the same time as unemployment may increase as a result of interest rate increases. He takes on a position where the monetary policy challenges are particularly great.
Read more: Erik Thedéen new Governor of the Riksbank