Svante Öberg, the first deputy governor at the Riksbank, on Tuesday said policymakers should concentrate more on shorter-term forecasts when setting interest rates.

At an event in Stockholm Sweden, Öberg said: "Monetary policy acts with a lag and must therefore be based, at least partly, on forecasts. The problem is that our forecasting ability is very limited – small at one year ahead and almost non-existent at two and three years ahead. We should, therefore, put more energy into analysing the