Riksbank Deputy Governor Floden Infected by Coronavirus

(Bloomberg) --

Riksbank Deputy Governor Martin Floden has been infected with the coronavirus after a visit to northern Italy.

Floden tested positive for the virus on Friday. He is feeling well and is working from home, the bank’s spokesman Tomas Lundberg said by phone.

In addition to the recommendations of the country’s health agency, “the Riksbank has taken further precautionary measures regarding its employees,” the central bank said in its statement. For example, employees who have traveled to the worst-affected areas “must work from home during the two weeks immediately following their return home.”

The news comes amid increasing speculation about what measures the central bank may need to take to tackle the impact of the virus. Danske Bank analysts said last week they expect the Riksbank to cut its repo rate by 25 basis points in April, as Swedish workers risk a poor outcome in central wage negotiations amid the fallout from the virus. That easing call was echoed by Capital Economics on Monday.

The Riksbank ended half a decade of negative rates in December, despite a slowdown in the Swedish economy. Since then, some policy makers have signaled they’d rather expand an existing bond-purchase program than once again resort to subzero rates, should there be a need for further stimulus.

Floden is one of 248 people in Sweden to have been diagnosed with the virus, as of Monday. The central bank’s next monetary policy meeting is set for April 27.

To contact the reporters on this story: Niclas Rolander in Stockholm at nrolander@bloomberg.net;Love Liman in Stockholm at jliman1@bloomberg.net

To contact the editors responsible for this story: Tasneem Hanfi Brögger at tbrogger@bloomberg.net, Charles Daly

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