Swedish inflation is coming down but there is still a way to go before it is back at target, Central bank Deputy Governor Martin Floden said in a speech on Friday.

Floden said he was more optimistic about the inflation picture and about company pricing plans but that the central bank did not want to land in a situation where it started to cut rates too quickly and inflation picked up again.

At the January policy meeting, Floden said that if economic developments were positive, it would be reasonable for the central bank to cut the policy rate in the second or third quarter of this year.

"Nothing major has happened since then," Floden told reporters.

The Riksbank publishes its next policy decision on March 27.

At its most recent meeting it held its rate unchanged at 4.00% and said it might be possible to start easing policy earlier than previously expected, possibly in the first half of this year.

However, the Riksbank remains wary of setbacks, fretting about a weak crown, company pricing policies and the geopolitical situation.

Central bankers have stressed the need for caution in both the timing and pace of rate cuts.

Markets expect a first cut to the policy rate in May or June.

(Reporting by Simon Johnson, editing by Terje Solsvik)