Ingves hints at rate rise

The head of Sweden's central bank hinted in a speech in Gothenburg on Tuesday that interest rates could rise further.

“Regarding the current monetary policy situation, my judgment is that the picture we painted of inflation prospects in the last inflation report remains the same in all essentials, even if it looks as though energy prices could lead to higher inflation in the short term,” Riksbank governor Stefan Ingves said.

“Monetary policy needs to become less expansive,” he added.

Ingves also commented on the recent falls on stock markets.

“It is not possible right now to draw far-reaching conclusions from the recent movements on the stock market,” he said.