Swedish Riksbank

A Focus on Central Banks, Commodities and China

April 21, 2016

The ECB just announced  decisions from today’s third Governing Council meeting of the year.  No further rate changes were enacted.  At the prior meeting on March 10, the refinancing rate was sliced 5 basis points to 0.0%, the deposit rate was moved 10 basis points more deeply into the red to -0.40%, and the marginal […] More

Sweden’s Negative Central Bank Interest Rate Becomes Even More So

February 11, 2016

The Riksbank experience with monetary policy normalization after the Great Recession preceded the Fed’s current attempt by over five years and serves as a lesson of what can go wrong.  From a low of 0.25% at the beginning of 2010, the Swedish repo rate was lifted by a full percentage point that year and by […] More

Swedish Riksbank Executive Board Keeps Existing Policy Settings

December 15, 2015

The released statement explaining the Board’s decision acknowledges greater-than-expected Swedish growth recently and revises upward projected GDP expansion in 2015 by 0.5 percentage points (ppts) to 3.7%. Because of the influx of migrants and spending associated with that development, the forecasts are raised 0.6 ppts to 3.6% for 2016, 0.2 ppts to 2.9% in 2017, […] More

Markets Anticipating a Fed Rate Hike Wednesday With Confidence

December 15, 2015

Today is the first day of a landmark FOMC meeting.  A policy announcement will be made Wednesday at 14:00 EST (19:00 GMT) followed by a Yellen press conference to start tomorrow at 14:30 EST. European share prices are up over 3.0% in Germany, France, Italy, and Spain.  They have rallied 2% in the U.K. and […] More

Swedish Quantitative Monetary Stimulus Augmented

October 28, 2015

Economic activity in Sweden is strengthening and inflation is showing a clear upward trend. But there is still considerable uncertainty regarding the strength of the global economy and central banks abroad are expected to pursue an expansionary monetary policy for a longer time. Compared with the previous assessment, inflation is expected to be a little […] More

Swedish Riksbank: No Policy Change this Time but Will Loosen Further If Inflation Tracks Lower than Assumed

September 3, 2015

Sweden has a very expansionary monetary policy the embodies a negative interest rate, bond buying and the threat of currency intervention.  All this is intended to raise inflation closer to 2% next year.  At the prior meeting on July 2, the repo rate was cut by 10 basis points, and a bond buying program totaling […] More

Swedish Monetary Policy Eased for the Third Time this Year and Fourth Time in Eight Months

July 2, 2015

The Riksbank’s six-person Executive Board surprised analysts with an interest rate cut, an augmentation of quantitative stimulus, a vow to intervene if needed, and a forecast that its easing cycle may not be over.  The new repo rate level of -0.35% is unlikely to rise before late 2016 and will probably be no higher than […] More

Australian and New Zealand Dollars Fall as U.S. Jobs Report is Awaited

July 2, 2015

The U.S. dollar climbed 0.9% against the kiwi, 0.6% versus the Aussie dollar, 0.2% relative to the yen, loonie and Swiss franc, and 0.1% against sterling.  The New Zealand dollar touched a 5-year low of USD 0.6670, and the Canadian dollar hit a new low for the move of C$ 1.2635.  In contrast, the euro […] More

Swedish Riksbank Expands Quantitative Easing

April 29, 2015

A SEK 10 billion program of bond buying was introduced by Swedish monetary authorities in February, expanded by an additional 30 billion kronor in March, and now again raised by another SEK 40-50 billion, bringing the total size of the initiative to SEK 80-90 billion.  At this month’s meeting, moreover, the repo rate, which had […] More

A Swedish Rate Cut Surprise Just ahead of FOMC Announcement

March 18, 2015

The possible sensitivity of Fed policy to the strength of the dollar acquired even more market interest after Swedish monetary authorities jumped the gun, reducing the Riksbank repo rate after an unscheduled meeting by 15 basis points today and announcing that 30 billion kronor or just under $3.5 billion of long-term government bonds will be […] More