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No need for the Riksbank to loosen policy further

Inflation has undershot the Riksbank’s forecastssince it last met to set policy in September. Butwe expect inflation to rise again before long, andwith economic conditions strong there is lesspressure to respond to temporary setbacks inhitting the inflation target than has been the casein recent years. As such, the Riksbank is unlikelyto announce any additional monetary support atits meeting next week.

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