Riksbank’s Ingves: There are big risks with withdrawing support for economy too quickly

There are big risks with withdrawing support for the economy too quickly, Riksbank’s Governor Stefan Ingves warned on Wednesday.

Ingves said that he expects inflation to fall in short term and then rise gradually again toward 2%.

On global vaccination, he said that it's “worth it for rich countries to pay to vaccinate the rest of the world.”

Last month, the Swedish central bank chief said it’s “too early to change direction in monetary policy” after keeping the key rates unchanged at 0.000%.

Market reaction

EUR/SEK spiked to a daily high of 10.0788 on Ingves’ comments, now trading around 10.0750, up 0.10% on the day.