Swedish Riksbank
February 13, 2019
Swedish Riksbank has not had a positive repo rate since a 25 basis point cut to zero percent in October 2014. That had been followed by additional reductions of 10 basis points in February 2015 and July 2015 and of 15 bps each in March 2015 and February 2016. But at this past December’s review, the central bank executive board implemented its first rate increase since July 2011, lifting the repo rate from negative 0.50% to minus 0.25%. And a statement released after today’s ensuing policy review didn’t flinch from the earlier forward guidance that the next rate hike will likely occur during the second half of this year. “As in December, the forecast for the repo rate indicates that the next increase will be during the second half of 2019, on condition that the economic outlook and inflation prospects are as expected. The Executive Board assesses that the repo rate needs to be raised at a slow pace even after that, roughly twice a year by 0.25 percentage points on each occasion, for inflation to remain close to 2 per cent.”
Copyright 2019, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Swedish Riksbank
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