Thedéen on economic recovery, stable policy rate, and cash infrastructure needs
Riksbank Governor Erik Thedéen stated that the Swedish economy is in a good position with a cyclical recovery underway and inflation close to target. He noted that the policy rate is expected to remain at 1.75 percent for some time, while also highlighting the need to improve cash infrastructure.
Economic rebound with stable policy rate
Governor Erik Thedéen emphasized that the Swedish economy is starting from a good position in an uncertain world.
The cyclical recovery has begun and, as household purchasing power strengthens, there are conditions in place for stronger economic growth and lower unemployment.
Inflation is close to the Riksbank's target but is expected to decline during the year, partly as a result of the temporary reduction in VAT on food.
The Riksbank's latest assessment is that the policy rate will remain at 1.75 percent for some time.
Thedéen stressed that the Riksbank remains vigilant and prepared to adjust monetary policy if the outlook changes, noting that additional information will be analyzed before the next meeting.
Improving cash infrastructure
In his discussions with business representatives in Härjedalen, Governor Thedéen also addressed developments in the payments market and the declining use of cash.
He underlined that cash remains important for society, particularly for reasons of contingency and inclusion.
However, Thedéen stated that the cash infrastructure needs to function significantly better.
He noted that retailers currently face major difficulties in obtaining petty cash and depositing their daily cash takings.
The Riksbank therefore welcomes the proposed legislation that would impose stronger requirements on banks to offer businesses services tailored to their needs for depositing daily cash takings.
Beyond the statistics
Thedéen's visit underscores the Riksbank's commitment to understanding real-economy impacts, moving beyond aggregate data.
While the policy rate path appears stable, the emphasis on vigilance highlights underlying uncertainties in the inflation outlook.
The focus on cash infrastructure reveals a critical, often overlooked, aspect of financial stability and social inclusion.