Swedish Riksbank
October 27, 2016
The Executive Board’s statement after agreeing to keep a negative 0.50% central bank interest rate has plenty of forward guidance painting a picture of even more monetary accommodation.
- The interest rate is unlikely to rise until early 2018, six months later than imagined earlier.
- Asset buying in the second half of 2016 will be no less than the prior indication that such will total SEK 245 billion by end-year. Such stimulus is likely to be extended into 2017.
- The assertion is made that “the probability that the rate will be cut further has increased.”
- Projected total and core CPI inflation has been trimmed for 2016, 2017 and 2018. Projected GDP growth next year was reduced, too.
The statement postulates that Sweden’s central bank interest rate will still be below zero even in the final quarter of 2018. The forecast rate level is -0.15%.
Copyright 2016, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Swedish Riksbank
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