Free Trial

TEXT: Sweden Riksbank Leaves Key Repo Rate At -0.50%

MNI (London)
--Bond Purchases To Continue As Planned
--First Riksbank Hike Not Seen Until Mid-2018
     LONDON (MNI) - Sweden's Riksbank has decided to leave the key repo rate
unchanged at -0.5% at Monday's meeting, with bond buying plans left unchanged.
     The full text of the Riksbank announcement follows:
     ===========================================================================
=
     Repo rate unchanged at -0.50 per cent -- bond purchases according to plan
     Date 07/09/2017 
     Economic activity is strong and inflation is close to the target of 2 per
cent. Monetary policy needs to remain expansionary for inflation to continue to
be close to 2 per cent. The Executive Board of the Riksbank has therefore
decided to hold the repo rate unchanged at -0.50 per cent and is expecting, as
before, not to raise it until the middle of 2018. The purchases of government
bonds will continue during the second half of 2017, as decided by the Executive
Board in April. 
     The economic signals from abroad are good, but global inflation remains
subdued. Compared with the forecast in July, there are now expectations of a
somewhat more expansionary monetary policy in many countries that are important
to Sweden.
     Economic activity in Sweden is strong; GDP grew rapidly in the second
quarter and the employment rate is at a historically high level. Inflation has
continued to rise and in recent months been higher than expected. The outcomes
are partly explained by temporary factors, but even disregarding this, inflation
has been stronger than expected.
     However, it has taken time and a great deal of support from monetary policy
to bring up inflation and inflation expectations. Although there has been a
broader increase in prices for services recently, economic activity needs to
continue to make an impact on price development. This is underlined by, for
instance, weak growth in cost pressures so far this year. It is also important
for the development of inflation that the krona exchange rate does not
appreciate too quickly. This could happen if, for example, the Riksbank's
monetary policy deviates too far from that of other countries.
     Continued expansionary monetary policy for inflation close to the target
     Given this, the Executive Board of the Riksbank has decided to hold the
repo rate unchanged at -0.50 per cent and does not expect to raise it until the
middle of 2018. Purchases of government bonds will continue during the second
half of 2017, as decided in April. At the end of the year, the purchases of
government bonds will thus amount to a total of SEK 290 billion, excluding
reinvestments. Maturities and coupon payments will be reinvested until further
notice. CPIF inflation is expected to be close to 2 per cent in the coming
years, with continued support from monetary policy.
     Just as before, the Executive Board is prepared to implement further
monetary policy easing if necessary to stabilise inflation and safeguard the
inflation target. All of the tools that the Riksbank has described earlier can,
as always, be used if necessary.
     Monetary policy needs to be expansionary to safeguard the role of the
inflation target as nominal anchor for price-setting and wage formation. But the
low interest rates at the same time contribute to increasing the risks linked to
high and rising household indebtedness. To achieve long-term sustainable
development in the Swedish economy, these risks need to be managed via targeted
measures within housing policy, taxation policy and macroprudential policy.
--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
}); window.REBELMOUSE_TASKS_QUEUE.push(function(){ window.dataLayer.push({ 'event' : 'logedout', 'loggedOut' : 'loggedOut' }); }); window.REBELMOUSE_TASKS_QUEUE.push(function(){ (function appendPosts () { var policyPosts = document.getElementsByClassName('policy-posts-wrapper')[0]; var policyPostsMenu = document.querySelector('.policy-posts-span'); policyPostsMenu.append(policyPosts); policyPosts.style.display = "block"; var empolicyPosts = document.getElementsByClassName('em-policy-posts-wrapper')[0]; var empolicyPostsMenu = document.querySelector('.em-policy-posts-span'); empolicyPostsMenu.append(empolicyPosts); empolicyPosts.style.display = "block"; var dataPosts = document.getElementsByClassName('data-posts-wrapper')[0]; var dataPostsMenu = document.querySelector('.data-posts-span'); dataPostsMenu.append(dataPosts); dataPosts.style.display = "block"; })(); }); window.REBELMOUSE_TASKS_QUEUE.push(function(){ document.querySelectorAll(".my-mni").forEach(function(item){ item.href="/core/users/email_login/"; item.innerHTML="Log In"; }) }); window.REBELMOUSE_TASKS_QUEUE.push(function(){ document.querySelector('.signup-form').addEventListener('submit', () => { window.dataLayer = window.dataLayer || []; dataLayer.push({ 'event' : 'submission_click', 'event_category': "Sign Up Button Clicks", 'event_label': "Posts" }); }) }); window.REBELMOUSE_TASKS_QUEUE.push(function(){ REBELMOUSE_STDLIB.createElementChangeListener('.signup-form.authentication--form',function(item){ item.onsubmit=function(e){ ga('b.send', 'event', {eventCategory: 'Signup', eventAction: 'CompletedForm', eventLabel:'pageTitle', eventValue:15}); window.dataLayer = window.dataLayer || []; dataLayer.push({ 'event' : 'signup_click', 'event_category': "Signup", 'event_action': 'CompletedForm', 'event_label': 'pageTitle', 'event_value': 15 }); } }) }); window.REBELMOUSE_TASKS_QUEUE.push(function(){ document.querySelectorAll("img").forEach(function (img) { img.addEventListener("contextmenu", function (e) { return false; }); }); document .querySelector(".site-logo img") .addEventListener("contextmenu", function (e) { return true; }); }); window.REBELMOUSE_TASKS_QUEUE.push(function(){ document.querySelector('.signup-form').addEventListener('submit', () => { window.dataLayer = window.dataLayer || []; dataLayer.push({ 'event' : 'submission_click', 'event_category': "Sign Up Button Clicks", 'event_label': "Posts" }); }) }); window.REBELMOUSE_TASKS_QUEUE.push(function(){ REBELMOUSE_STDLIB.createElementChangeListener('.signup-form.authentication--form',function(item){ item.onsubmit=function(e){ ga('b.send', 'event', {eventCategory: 'Signup', eventAction: 'CompletedForm', eventLabel:'pageTitle', eventValue:15}); window.dataLayer = window.dataLayer || []; dataLayer.push({ 'event' : 'signup_click', 'event_category': "Signup", 'event_action': 'CompletedForm', 'event_label': 'pageTitle', 'event_value': 15 }); } }) }); window.REBELMOUSE_TASKS_QUEUE.push(function(){ let posts = document.querySelectorAll(".all-content-wrapper .widget:not(.stream-story-processed)"); window.check_story_posts(posts, "streamOfPosts"); }); window.REBELMOUSE_LOW_TASKS_QUEUE.push(function(){ function populateInputsWithAPAPI(c) { document.querySelectorAll('.signup-form input[name="country"]').forEach(el => { el.setAttribute("value", c.country_name); }); document.querySelectorAll('.signup-form .country_name').forEach(el => { el.setAttribute("value", c.country_name); }); let country_code = c && c.country_code ? c.country_code.toLowerCase() : "auto"; document.querySelectorAll('.signup-form .country_code').forEach(el => { el.setAttribute("value", country_code); }); document.querySelectorAll('.signup-form .selected_country').forEach(el => { el.setAttribute("value", country_code); }); } const fetch = function (err, res) { var r = new XMLHttpRequest(); r.open("GET", err, !0), (r.responseType = "json"), (r.onload = function () { var err = r.status; res(200 === err ? null : err, r.response); }), r.send(); }; function setupCountry() { if (window.preventDuplicateExec) { return; } window.preventDuplicateExec = true; window.REBELMOUSE_STDLIB.onElementInViewport({ threshold: 0, firstOnly: true, oneTime: true, selector: ".signup-form", onIntersect: (entry) => { // when you need to get access to that data you call it in that way: let ipapiData = localStorage.getItem("ipapiData"); if (!ipapiData) { fetch("https://ipapi.co/json/", function (err, ipData) { console.log("populating inputs with data from IP API "); localStorage.setItem("ipapiData", JSON.stringify(ipData)); populateInputsWithAPAPI(ipData); }); } else { console.log( "populating inputs with data from IP API data stored in local storage" ); populateInputsWithAPAPI(JSON.parse(ipapiData)); } }, }); } setupCountry(); }); window.REBELMOUSE_LOW_TASKS_QUEUE.push(function(){ /* const sidebar = document.querySelector('.left-sidebar-container'); const stickyContent = document.querySelector('.sticky-content'); const siteContent = document.querySelector('.all-posts-stream'); if (sidebar && stickyContent && siteContent) { if (siteContent.clientHeight > sidebar.clientHeight) { console.log('grater -> ', siteContent.clientHeight + ' > ' + sidebar.clientHeight); stickyContent.style.height = (siteContent.clientHeight - sidebar.clientHeight) + 'px'; } } */ }); window.REBELMOUSE_LOW_TASKS_QUEUE.push(function(){ function populateInputsWithAPAPI(c) { document.querySelectorAll('.signup-form input[name="country"]').forEach(el => { el.setAttribute("value", c.country_name); }); document.querySelectorAll('.signup-form .country_name').forEach(el => { el.setAttribute("value", c.country_name); }); let country_code = c && c.country_code ? c.country_code.toLowerCase() : "auto"; document.querySelectorAll('.signup-form .country_code').forEach(el => { el.setAttribute("value", country_code); }); document.querySelectorAll('.signup-form .selected_country').forEach(el => { el.setAttribute("value", country_code); }); } const fetch = function (err, res) { var r = new XMLHttpRequest(); r.open("GET", err, !0), (r.responseType = "json"), (r.onload = function () { var err = r.status; res(200 === err ? null : err, r.response); }), r.send(); }; function setupCountry() { if (window.preventDuplicateExec) { return; } window.preventDuplicateExec = true; window.REBELMOUSE_STDLIB.onElementInViewport({ threshold: 0, firstOnly: true, oneTime: true, selector: ".signup-form", onIntersect: (entry) => { // when you need to get access to that data you call it in that way: let ipapiData = localStorage.getItem("ipapiData"); if (!ipapiData) { fetch("https://ipapi.co/json/", function (err, ipData) { console.log("populating inputs with data from IP API "); localStorage.setItem("ipapiData", JSON.stringify(ipData)); populateInputsWithAPAPI(ipData); }); } else { console.log( "populating inputs with data from IP API data stored in local storage" ); populateInputsWithAPAPI(JSON.parse(ipapiData)); } }, }); } setupCountry(); });