Swedish Riksbank

September 4, 2014

Sweden’s repo rate, which had been cut by 50 basis points on July 3 to 0.25%, was left unchanged at this week’s subsequent meeting of the Riksbank Executive Board.  Between December 2011 and December 2012, four cuts took the repo rate down to 1.0% from 2.0%, and a fifth reduction was administered in December 2013.

The statement released today revised projected 2014 growth down 0.5 percentage points to 1.7% and projected 2015 growth to 3.0% from 3.3% assumed at the time of the July rate cut.  Unlike most central banks, the Riksbank gives quantifiable forecasts of the repo rate’s future path.  Officials do not expect a hike until 4Q15 and slightly reduced the projected rate levels in 3Q16 and 3Q17 to 1.38% and 2.25%, respectively.

Copyright 2014, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.

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