Central Bank Notes: Sweden–Policy Unchanged, Outlook Softer

Posted July 5, 2012 by Editor

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• The Riksbank kept its key repo rate at 1.50% after its latest Board meeting. In addition, the new projections detailed in the new Monetary Policy Report for the repo rate pointed to somewhat softer policy outlook than that outlined back in February. However, the Riksbank basically envisages stable policy for a further year, after which rates are still seen rising towards 3.0%, but not until 2015.
• Further easing is not being ruled out by the Board, and while an earlier hike is also seen as possible, it is clear that the Riksbank is very much in wait-and-seen stance, wary of the worst in terms of what the Eurozone situation may bring, but also recognizing somewhat this time around the resilience of the Swedish economy.

SWE Jul 5[/private]