Swedish Riksbank

November 26, 2020

The Swedish Riksbank’s repo rate has been at 0% or negative since February 2015. It’s last change, a 25-basis point hike to zero percent, was done in December 2019. A statement after the just-completed latest policy review by the central bank’s Executive Board expands the size of the asset purchase program from SEK 500 billion to up to SEK 700 billion and extends the program through the end of 2021. Officials do not expect the repo rate to move above 0% before the end of 2023. Today’s easing is meant “To give further support in an uncertain time, improve the conditions for a recovery and help inflation rise towards the target of 2 per cent. The increased spread of infection and tighter restrictions will lead to a new downturn in the Swedish economy.” Projected inflation was revised southward for 2020, 2021, 2022, and 2023.

Copyright 2020, Larry Greenberg. All rights reserved. No secondary distribution without express permission.



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