(Bloomberg) -- Even the Riksbank is now showing some concerns about the selloff in the krona.
Minutes from the February meeting released on Friday showed that “some board members also discussed the recent depreciation of the krona.” Deputy Governor Martin Floden even suggested that a weaker currency could play a part in him advocating for another rate increase already in two months.
“An increase in April could possibly be justified if the krona continues to be weak, if the three forthcoming inflation outcomes indicate higher inflationary pressures and if at the same time the economy develops well,” Floden, traditionally one of the board’s more hawkish members, said in the minutes.
The minutes overall revealed a wait-and-see approach, reflecting the board’s outlook for higher rates later this year. The krona strengthened 0.2 percent to 10.597 per euro as of 10:18 a.m. in Stockholm.
The bank this month held its benchmark rate unchanged at minus 0.25 percent after in December tightening for the first time in seven years. Policy makers also kept their outlook for a second tightening in the second half of this year, offering an upbeat message, while acknowledging risks to economic growth both domestically and internationally.
Deputy Governor Per Jansson couldn’t attend the meeting, but indicated in a separate statement also released on Friday that he supported the decision.
Following are some of the key comments from the minutes of last month’s rate meeting.
--With assistance from Niclas Rolander, Veronica Ek, Amanda Billner, Hanna Hoikkala, Rafaela Lindeberg and Love Liman.
To contact the reporter on this story: Jonas Bergman in Oslo at firstname.lastname@example.org
To contact the editors responsible for this story: Jonas Bergman at email@example.com, Stephen Treloar
©2019 Bloomberg L.P.