STOCKHOLM, May 17 (Reuters) - Prospects in Sweden for continued low inflation are favourable and monetary policy is being adjusted with caution, Riksbank Governor Erik Thedeen said on Friday.
"If the outlook for inflation holds, the rate could be cut two more times during the second half of the year," Thedeen said in the summary of a speech published on the central bank's website.
"We are now back in a situation where inflation is close to the target of 2% and where the prospects for continued low inflation are favourable. That's why we were able to start easing monetary policy," he added. (Reporting by Anna Ringstrom, editing by Louise Rasmussen)
