IMF says Sweden's monetary policy is appropriate

The International Monetary Fund (IMF) said on Monday Sweden's monetary policy was appropriate as it forecast a 6 percent contraction of the Nordic country's export-dependent economy this year. The IMF said inflationary pressures in Sweden had eased since the autumn of 2008 and that Sweden would likely see a "modest" undershooting of its one to three percent inflation target this year.
"Monetary policy is appropriate," it said in a statement on the Swedish central bank's website, adding that the case for an immediate further relaxation was not compelling. "It is important to realise that if in trying to do more, on the budget side or the monetary side, it may backfire," Peter Doyle, head of the IMF delegation, said at a press briefing.