• Responsible wage formation benefits the Swedish economy.
• My view at the last monetary policy meeting in March was that the development of inflation looked so favorable that it might have been possible to cut the interest rate even at that stage.
• The important thing, however, is that the development of inflation does not deteriorate.
• If that does not happen, as I see it, the threat to being able cutting the interest rate in May will instead come mainly from the postponement of the rate-cutting plans of other central banks.
• This risks weakening the krona, which in turn could push up inflation again going forward, in the worst case scenario in a serious way.

This article was written by Arno V Venter at www.forexlive.com.