MNI POLICY: Sweden's Riksbank Leaves Rates On Hold

The Riksbank left its key interest rate unchanged at 0% Tuesday, whilst maintaining its program envelope for asset purchases at SEK 500 billion, with expectations it will run through until the summer of 2021.

Policymakers said the Swedish Economy had a "long way back" and the recovery was "fraught with uncertainty."

The Executive Board said the combination of measures taken by the Riksbank during the spring and summer is the most effective way of achieving this. The Riksbank will therefore continue to make asset purchases and offer liquidity within all of the programs launched so far this year. The repo rate is held unchanged at zero per cent, and is expected to remain at this level in the coming years.

Monetary policy is thereby creating conditions for a recovery in the Swedish economy and helping inflation rise towards the target of 2 per cent towards the end of the forecast period, the Riksbank added