Swedish Riksbank Policy Continues to Be Very Accommodative

April 27, 2017

A released statement after today’s Executive Board meeting signaled that the negative 0.50% repo rate will not be raised above that level until at least mid-2018, later than indicated previously, and extended the program of government bond purchases through the second half of 2017. By end-2017, SEK 290 billion will have been bought under this program, which has helped underpin economic growth. Indeed, GDP is now expected to rise 2.8% this year, 0.3 percentage points more than expected previously. However, slower wage growth than assumed before will keep core inflation under 2.0% both this year and next. The next policy announcement will be on July 4th.

Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.



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