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Minutes: Breman: May be appropriate to taper further in 2022

RIKSBANK
  • "My assessment is that it may be appropriate to taper reinvestments further in 2022, but that it is reasonable to take decisions one quarter at a time."
  • "I think it is a well balanced monetary policy to gradually move towards a less expansionary monetary policy over the forecast period. The decisions and the forecast for monetary policy we have at today's meeting are consistent with inflation being on target also in the medium to longer term. I therefore support leaving the policy rate unchanged at today's meeting and for the repo rate path to signal an increase only after bond purchases have been tapered further."
  • On QE breakdown: "As the economy has strengthened, the need to support the functioning of markets has diminished. It is therefore reasonable for the Riksbank’s purchases to be more focused on securities issued by governments and municipalities. If this distribution of reinvestments is maintained, it means that holdings of private securities will be tapered faster than holdings of bonds issued by governments and municipalities."

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