Riksbank Governor Stefan Ingves. Photo: Linus Sundahl-Djerf
With the extension of the program, the Riksbank at the end of 2016 made support bought a total of 245 billion.
“the Riksbank’s monetary policy has contributed to a stronger economy and rising inflation. But even if inflation rises, the upturn jerky,” the Riksbank.
Support purchases considered to reduce the risk that the krona appreciates faster than forecast .
the krona strengthened against both the dollar and the euro by 4-5 cents after the announcement of increased support purchases.
Market rates fell slightly.
Deputy Governor Cecilia Skingsley reservation against the decision to carry out further bond purchases.
the Riksbank’s rate path for the first half of this year decreased marginally, but remained unchanged from 2017. at the same time Riksbank raises its inflation forecast for this year to 1.0 percent , from the previous 0.7 percent. For 2017, however, lowered the forecast to 1.9 percent from 2.1 percent.
The growth forecast for this year increased to 3.7 percent from 3.5 percent, but for 2017 and 2018 are lowered at the same time somewhat.
the outlook for , the global economy remains uncertain, and the Executive Board notes that several other central banks pursuing a highly expansionary monetary policy which increases the risk that the krona appreciates too quickly.
“That could dampen growth and inflation in Sweden and undermine confidence in the inflation target,” the Riksbank.
the Board did not preclude further action.
“There is a continuing high level of preparedness to make monetary policy more expansionary if needed to safeguard the inflation target “.
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