(Bloomberg) -- Sweden’s larger-than-expected inflation-rate drop is “good news,” and paves the way for strengthening the purchasing power at households, according to Riksbank Governor Erik Thedeen. 

“Inflation has moved in the right direction and the latest outcome was significantly lower than our forecast,” Thedeen said in a summary of a speech published on the central bank’s website on Tuesday. 

The Riksbank has said it will probably start lowering borrowing costs either in May or in June, and a benign inflation reading for March fueled expectations that it will begin cut its benchmark rate already next month, making its first easing move ahead of the European Central Bank. 

Read More: Swedish Inflation Surprise Spurs Bets on Rate Cut Next Month

While an early cut could lead to a weaker krona, Thedeen said he doesn’t think the Riksbank should link its monetary policy directly to other central banks’ moves.

“It is inflationary pressures and the prospects for inflation here in Sweden that determine our monetary policy,” the governor said. “Before our next interest rate decision in two weeks’ time, we need to analyze what the clearly lower inflation means for inflation in the longer term and weigh up the risks of inflation rising again.”

©2024 Bloomberg L.P.