off-the-wire

UPDATE 2-Swedish central bank policy-hawk Ohlsson to step down

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Adds analyst comment, background) STOCKHOLM, March 22 (Reuters) - Sweden's central bank said on Wednesday Henry Ohlsson would resign in June after eight years as deputy governor on its policy-making board, shortly after turning 67. Ohlsson's current term on the six-person board was due to expire in January 2026. "Henry Ohlsson will remain as a member of the executive board until 30 June, but with effect from today, 22 March, will not participate in the executive board meetings or the monetary policy meetings in April and June," the Riksbank said. Ohlsson, a labour market expert, joined the board in 2015 and has consistently been seen as a hawk. He has advocated bigger rate hikes to fight the current bout of inflation that has hit Sweden than his colleagues have. In February, when the Riksbank hiked the policy rate by a half-percentage point, Ohlsson said he would have supported a


bigger hike had a majority of members backed such a move.


That echoed his stance from


November , when he wanted a 1.0% hike rather than the three-quarter point increase agreed on by the board.


On neither occasion did he vote against the majority or enter a reservation about the rate path.


"We view Ohlsson’s departure and his non-participation in the upcoming April and June meetings as slightly dovish," Swedbank said in a note, adding it continues to forecast a half-percentage point hike at both meetings.


Ohlsson's resignation means half the board will have changed over roughly a six-month-period. Governor Erik Thedeen replaced Stefan Ingves at the start of the year while Deputy Governor Aino Bunge joined in December after Cecilia Skingsley moved to the Bank for International Settlements.


According to a new Riksbank act, the board will consist of five members by 2028 at the latest and it was not immediately clear if Ohlsson would be replaced.


"The General Council of the Riksbank will formally decide whether to begin a recruitment process for the appointment of a new Member at its meeting on 21 April," the Riksbank said. (Reporting by Anna Ringstrom and Simon Johnson, editing by Terje Solsvik and Niklas Pollard)

Messaging: anna.ringstrom.thomsonreuters.com@reuters.net))
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