The Riksbank Executive Board hiked by 25 basis points at its April meeting and looking ahead sees tightening early, then slowing.
The Riksbank hiked by 25 basis points to 0.25% Thursday, publishing a collective forward rate path showing a high probability of three more hikes this year and two more in 2023. The path showed the board planning to front-load tightening in response to the inflation shock.
The repo rate -- to be renamed the policy rate from June -- was shown rising swiftly to 1.18% by the second quarter of 2022, with the rate path on MNI calculations showing a June hike fully priced in and a high probability of 25 basis point hikes at each subsequent meeting this year, with the Riksbank stating that there were likely to be two or three more hikes in 2022.
The board also announced a slowing of asset purchases, Inflation is expected to fall back in 2023 and to be close to the 2.0% target from 2024.