Rates seen at low levels until mid-2017 – Riksbank’s Ohlsson

Henry Ohlsson, Deputy Governor of the Riksbank, argued that the current low level of interest rates could last until June/July 2017, and they’re expected to rise gradually since then. In this tone, Praet somewhat warned households who are trying to borrow money in order to buy a house.

At today’s speech, he added that monetary policy has an influence on the rate of inflation and inflation expectations.

Ohlsson has hinted at the likeliness that the repo rate could climb to 3.5% or 4.5% in the future, always keeping the inflation target at 2% in the Nordic economy.