Swedish inflation expectations rise-poll for c.bank

Published 12/08/2010, 02:23 AM
Updated 12/08/2010, 02:24 AM

* Key economic players expect higher inflation-poll * Views on interest rates also up

* View on GDP touch more upbeat

(Adds details)

STOCKHOLM, Dec 8 (Reuters) - Inflation expectations among key financial and business groups in Sweden have risen in recent months, a poll commissioned by the central bank showed on Wednesday.

The survey of employee and employer organisations, purchasing managers and money market players, carried out by research group TNS Prospera, showed headline inflation was seen at 1.9 percent in 12 months and 2.2 percent in two years.

The outcome compares with the previous poll published in September when inflation was seen at 1.7 percent in 12 months' time and 2.0 percent in two years.

The expectation for the central bank's repo rate was also higher amongst all the interviewees, with the rate expected at 1.7 percent after a year, versus an earlier view of 1.3 percent.

Money market players alone see the repo rate at 1.9 percent in 12 months versus the 1.8 percent seen in a separate survey published in November. After 24 months, the repo rate was seen at 2.5 percent, unchanged from the previous survey.

The poll showed that interviewees saw gross domestic product rising 3.5 percent in a year and by 3.2 percent after 2 years. Both were higher than the views expressed in the September poll for GDP growth of 3.1 percent and 3.0 percent respectively.

(Editing by Kazunori Takada)

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