Riksbank leaves rates unchanged – Business

the Riksbank leaving the repo rate unchanged at minus 0.5 per cent. Continue buy government bonds.

the Riksbank leaving the repo rate unchanged at -0,50%.

According to SME Direkt survey waited ten of the eleven surveyed analysts that the Riksbank would leave the repo rate unchanged at -0,50%, while one expected a cut of 10 basis points, to -0,60 percent.

the Riksbank changed by the repo rate at the monetary policy meeting on 10 February 2016, when it was reduced by 0.15 percentage points to -0,50%.

the Board was unanimous on the interest rate decision.

the Riksbank continues to buy government bonds

the Riksbank decided to continue buying government bonds for a total of 30 billion sek 15 billion, in nominal and 15 billion in real, up to mid-2017.

the Riksbank has according to the previous decision bought government bonds for a total of 245 billion, of which realobligationer for sek 15 billion, up to and including december 2016.

Ten of the surveyed economists had expected a decision on the extended bond purchases, according to SME Direkt survey.

the Board was unanimous in the decision to extend the obligationsköpen. Martin Flodén wanted to buy would be extended by 15 billion and cover only the real government bonds.

Henry Ohlsson and Cecilia Skingsley did not want to buy would be extended because monetary policy is not needed to be made more expansionary in the current economic situation.

high probability that the interest rate lowered

the Riksbank’s repo-rate path has been left unchanged, and the bottoms continued on -0,56%, that is to say, indicates a probability of a rate cut. It is shown by the Riksbank’s new forecast.

“the executive board of the Riksbank has decided to maintain the repo rate at -0,50% and it remains more likely that the interest rate is reduced than that it will be raised in the near future. First, at the beginning of 2018 is expected the interest rate to be increased”, writes the Riksbank.

the Board notes that they continue to have the resources to make monetary policy more expansionary and if the trend rate of increase in inflation would be threatened, and the confidence in the inflation target is weakened.

All of the tools that the Riksbank has stated in previous monetary policy reports, most recently in september, can still be used.