The Riksbank will this morning with its rate decision. At the previous meeting were lowered repo rate to zero to get inflation begin to rise against the two per cent – and there has been talk of a negative rate.
Inflation remains not started to move upwards and there is a possibility to reduce the negative interest rate, said Deputy Governor Per Jansson few weeks ago.
– We have to have alternative plans and there’s a small space behind when it comes to interest rate policy. In a technical sense, we know how to implement a negative interest rate.
– There is still some work around whether it is desirable to have a negative rate. There’s no country that has had firmly negative market so it is a difficult question, said Per Jansson.
There is a bit of uncharted land this negative policy rate and it is no analysts who believe that the Riksbank will take to it today.
Without all expect that the repo rate will remain at zero. Especially as the latest inflation figure was in line with the Riksbank’s forecasts.
But still inflation of minus 0.2 per cent and it is far from the target two percent and a majority of analysts believe that the Riksbank will today mark by changing the prediction of when the next rate hike, one of them is Nordea chief economist Annika Winsth.
– If you need to take additional mixes, we believe that what you do in first place is to say that the interest rate will remain at zero even longer than the summer of 2016.
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