As the bond selloffs showed its ugly head amid looming inflationary threat, it seems that nerves of central bankers are rattling all around the globe. In October Sweden’s Riskbank kept the rates at -0.5 percent but surprised the market with a major dovish outlook. It said that the central bank will not be increasing interest rates until early 2018 and its stands ready to expand its bond purchase program at its December meeting.
However, At a recent speaking, Risk bank’s deputy governor Martin Flodén question the value addition by further interest rate cuts or bond purchases. He said that ending the bond buying program is an open option at the December meeting saying that it is not obvious that further interest rate cuts and bond buying would help the central bank reach its inflation goal.
After bottoming below zero in 2014, inflation has stayed above zero mark since late last year and is currently at 1.2 percent. Swedish Krona has strengthened over the comments of the deputy governor but still hovering around the weakest level since 2008.


Gold Prices Pull Back After Record Highs as January Rally Remains Strong
Oil Prices Slide Nearly 3% as U.S.-Iran Talks Ease Geopolitical Tensions
Jerome Powell Attends Supreme Court Hearing on Trump Effort to Fire Fed Governor, Calling It Historic
ECB Signals Steady Interest Rates as Fed Risks Loom Over Outlook
BOJ Rate Decision in Focus as Yen Weakness and Inflation Shape Market Outlook
South Korea Factory Activity Hits 18-Month High as Export Demand Surges
Why Trump’s new pick for Fed chair hit gold and silver markets – for good reasons
RBA Deputy Governor Says November Inflation Slowdown Helpful but Still Above Target
Asian Stocks Waver as Trump Signals Fed Pick, Shutdown Deal and Tech Earnings Stir Markets
U.S. Prosecutors Investigate Fed Chair Jerome Powell Over Headquarters Renovation




