Riksbank’s Ingves: Policy rate will remain an important instrument

During the pandemic, our focus has been on keeping interest rates low and ensuring that there is good access to liquidity, Stefan Ingves, Governor of Sweden's central bank (Riksbank), said on Tuesday, per Reuters.

Additional takeaways

"I consider that changes in the central bank’s holdings of various assets will be an important part of monetary policy for a long time to come."

"Policy rate will remain an important instrument."

"We have emphasised that the policy rate may be cut to below zero, should the circumstances justify it."

Market reaction

The EUR/SEK pair edged higher after these comments and was lat seen gaining 0.77% on a daily basis at 10.2316.