Riksbank’s Skingsley: Negative rates might not work as well as they did between 2015-19

Cecilia Skingsley, Deputy Governor of the Swedish central bank, Riksbank, was out on the wires in the last minutes, via Reuters, making some comments on the monetary policy and exchange rate level.

Key quotes

“Negative rates might not work as well as they did between 2015-19 if adopted in the future, though they also might.”

“Development in Swedish crown I do not see as particularly dramatic. “

A fortnight ago, Skingsley noted that it is possible to cut rates below zero again.

On Wednesday, Deputy Governor Per Jansson said, “If inflation expectations fall sharply, I would not hesitate to support a rate cut.”

Market reaction

EUR/SEK extends recovery from the daily lows of 10.31 following the dovish comments, which likely undermined the sentiment around the Swedish Krona (SEK).

The cross was last seen trading at 10.33, up 0.12% on the day.