Riksbank leaves rates unchanged – Expressen

On Wednesday, the Riksbank announced that the ruling repo rate, in line with market expectations, remains at a record low of minus 0.5 percent.

In contrast adjusted rate path, the forecast of the own interest rate decisions, down.

A first rate hike towards the end of 2017 instead of the previously next summer.

– they shot at everything half a year, you could say. When can we expect low mortgage rates even further ahead, says Johanna Hill, saving analyst at Netbank Avanza.

“The Swedish economy continues to strengthen, but uncertainty over economic developments in the outside world is large and has increased as a result the outcome of the British referendum on the EU “, of the Riksbank in a press release.

Lågräntetiden extended

Swedish mortgage holders, the decision means that banks’ interest rates are not likely to be lowered, but that the period of historically low interest rates is stretched further.

– After brexit and the turmoil it was pretty obvious, says Johanna Hill.

First, the third quarter of 2018, the Riksbank that the repo rate has made up of plus again.

as expected, are likewise not Riksbank few other measures, currency interventions or expanded bond purchases, to lower the value of the Swedish krona and boost inflation.

Riksbank looks a little darker on growth abroad.

“the Riksbank has the light of the outcome of the referendum and the increased uncertainty revised down GDP growth in the world in the coming years. Britain’s GDP level has been revised down by 2 percent at the end of the forecast period, while inflation has been revised upwards since the pound is expected to be weaker, “ of the Riksbank.

” You do not know how it’s going to land “

Although it thinks the Swedish Central Bank to our own economy continues strengthening, thus giving rising inflation.

SEB’s chief economist Robert Bergqvist:

– the main reason for the Riksbank to take this step, as I see it, is that brexit appeared in the sky like a dark cloud. The Riksbank’s conclusion is that brexit should not have a major impact for Sweden, but you do not really know how it’s going to land. For that reason, flagging it for that it will take another quarter before the Riksbank raises interest rates.

Later in July, also the Bank of England, the European and US central bank to leave the rate decision, which may also affect the Riksbank’s future assessments.

Chief Analyst: “the Riksbank has gone too far”

Robert Bergqvist warns that the low interest rates not only for good with it.

– Somewhere we must start realize that monetary policy is not the medicine to boost the world. I get the impression that central banks might even have done too much. You create a paralysis of the economy.

Even Torbjorn Isaksson, chief analyst at Nordea, is critical for monetary policy.

– I said a long time. The Riksbank has gone too far with its monetary policy. I do not think the interest rate will be below zero and I do not think you should buy government bonds. With less interest you stimulate the economy too much, he said.

Deputy Governor reservation

The Vice Governor Martin Flodén, professor of economics at the University of Stockholm, made a reservation against today’s ruling and referred to the Explanatory Memorandum which he stated in its reservation on 4 January.

When warned Martin river among other things that Sweden is in a position “where our monetary policy tools are becoming more difficult to use” as he expressed doubts about currency intervention efficiency.

Annika Winsth, chief economist Nordea, see today’s announcement that the Riksbank does not want to do more if it does not have to.

– River confirmed it by entering reservations. He flagged a number of times that he thinks the toolbox are becoming empty and that you can discuss the effects we get to continue. It is a further signal of this.

But, according to Annika Winsth Riksbank had not so much to choose before today’s announcement.

– In this situation, when we received a brexit and all central banks that are important to us say that you stand on tiptoe and projecting increases, as the Bank of England, the Riksbank can not go on across it. In this situation, the Riksbank was forced to do as they did.

Inflation rate of 2 percent

The Riksbank’s inflation target is that the measure of the CPI, at 2 percent.

There, believes the central bank, a balance between the necessary growth and on the other hand, a rate of increase that is under control.

Currently the around or just under 1 percent, but at year-end 2017/2018 believe the Riksbank that inflation is on target.