I think that we are able to contain inflation by hiking interest rates. There is always very kind of… for a small open economy like Iceland, and Poland is to some extent too, also an open economy. The currency market dynamics can be difficult, but I think we can – says Ásgeir Jónsson, governor of the Central Bank of Iceland.
Piotr Szpunar, Director of the Economic Analysis Department at NBP, interviews Stefan Ingves, the Governor of Sveriges Riksbank, for the NBP Obserwator Finansowy:
Is it necessary for central banks to support conversion of Swiss franc-denominated loans? Hungary, Croatia, and Romania all have different experiences in this regard. The outcomes observed in these countries show that assistance on the part of central banks isn’t always the obvious answer.
Most often we get to hear about the dollar, the euro or the Swiss franc. The pound will get a mention now and then, and sometimes the yen. The press often reports on emerging currencies, such as the Turkish lira, the Russian ruble or some Latin American currency. But hardly ever do we get to hear anything about the Israeli shekel. This is a pity.
