Swedish Riksbank
July 1, 2020
The Swedish Riksbank repo rate was left unchanged at zero percent. It’s been at that level since a 25-basis point hike last December. In mid-March, however, officials at an unscheduled emergency meeting agree to purchase SEK 300 billion of assets during 2020 and to increase loans to banks. Today, those programs were loosened. The asset program limit was raised to SEK 500 billion and will run through mid-2021, and the central bank will begin purchases of corporate bonds in September. In presenting the results of this week’s meeting, the Executive Board lowered projected CPI inflation to 0.5% this year and 1.4% in each of the following two years, and the projected path of the repo rate now remains at 0% all the way to at least the third quarter of 2023.
Copyright 2020, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Swedish Riksbank
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