Swedish Riksbank
October 26, 2017
Monetary officials at the Swedish Riksbank reaffirmed that a central bank rate hike is unlikely before the second half of next year and that the upward path thereafter will be gentle. According a a released statement, the repo rate, which has been non-positive since October 2014, negative since February 2015, and at the current -0.50% level since a 15-basis point reduction in February 2016, is expected to be still negative at the end of 2018, just around +0.25% at the end of 2019 and still under 1.0% late in 2020. Projected total consumer price inflation in 2018 and 2019 were each revised slightly lower even though official anticipate growth of almost 3% both this year and next. In separate policy decisions, the Executive Board reaffirmed its plan to continue asset purchases through the end of this year and extended a special mandate to authorize foreign exchange intervention more easily should the krona appreciate too much.
Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Swedish Riksbank
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