Riksbank to cut the repo rate by 0.10 percentage points to -0.35 percent (-0.25). According to SME Direkt survey expected nine out of ten respondents analysts that the Riksbank would leave the repo rate unchanged, while one believed in a reduction of -0.40 percent.
The Riksbank will continue to buy nominal government bonds for a further 45 billion between September and the end of the year.
The National Bank notes that the rise in inflation and economic activity in Sweden continues to strengthen. But uncertainty in the world has increased and the impact of the situation in Greece is difficult to assess.
“Since the interest rate decision in April also has the crown been stronger than the Riksbank’s forecast and the evolution of the exchange rate is a continuing risk of inflation rise. In this uncertain environment monetary policy needs to be even more expansive to ensure that inflation continues to rise towards the target of 2 percent. “writes the Riksbank.
The Riksbank revised no later than the repo rate at a non monetary policy meeting on 18 March 2015, when it was lowered to 0 , 15 percentage points. The Riksbank also decided at the regular meeting of April 28 to buy government bonds for an additional 40-50 billion, having previously bought government bonds for 40 billion.
The decision was divided, Henry Ohlsson did not want to cut the repo rate or the interest rate path. He said that it was enough to expand and extend the purchases of government bonds in the current situation.
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