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Sweden must continue to bring down inflation, central bank's Breman says

Newly-appointed Swedish central bank governor Anna Breman attends a news conference in Stockholm

OSLO (Reuters) - Sweden's rate of inflation needs to continue to decline to boost real wages and household prosperity, Riksbank Deputy Governor Anna Breman said in a summary of a speech published on the central bank's website on Wednesday.

"When inflation is high, as it is today, everyone is affected negatively. At the same time, there are large differences between the cost-of-living increases that different households face," Breman said.

"For some households, inflation is significantly higher than the average rate of inflation in Sweden. It is of the utmost importance that the fall in inflation continues," she added.

The Riksbank has hiked rates at each of its last seven policy meetings, taking borrowing costs to 3.75% from 0% in April last year.

Tighter policy is having an effect with the economy slowing sharply, house prices falling and inflation, which peaked at more than 10%, now easing.

But the Riksbank is still worried inflation could get stuck well above the 2% target and is expected to hike rates again on Sept. 21 and possibly also in November.

While most analysts expect the central bank to begin a gradual easing cycle around mid-year 2024, rate-setters have warned that rate cuts are a long way off.

(Reporting by Terje Solsvik, editing by Essi Lehto and Sharon Singleton)