Macroeconomics
Keep the interest rate unchanged at minus 0.5 percent, but extends the application for the acquisition of debt in the market until the summer of next year.
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The Swedish central bank Riksbanken holds interest rate unchanged at minus 0.5 per cent, says bank in a press release Wednesday.
at the same time notifies the central bank that the application for the purchase of government debt expanded by 30 billion Swedish crowns and that it be extended until the summer of next year.
Riksbanken repeat also that it is still more likely that the key policy rate should be lowered the next year than that it is set up.
in Order to get inflation up towards the target at two per cent, monetary policy must in the future continue to be very expansive, emphasizing the central bank.
Expand obligasjonskjøpene with 30 billion
In addition to minusrente makes the central bank also through the acquisition of government debt in an effort to push interest rates on loans with longer maturities down. It’s like these interest businesses and huhsholdninger are faced with when they need to borrow money.
Such acquisitions are referred to as quantitative easing (QE).
the Program for the acquisition of government debt was before the current change on the 245 billion and would originally run until the new year.
the Program expanded with the purchase of sovereign debt of 30 billion Swedish kronor forward to the summer of next year.
the Acquisitions are to be allocated with 15 billion Swedish kronor in nominal government bonds and 15 billion Swedish kronor in inflation adjusted bonds.
Altogether, will the central bank owning government debt of 275 billion at the entrance to the second half of next year.
In addition, the plan central bank to reinvest kupongbetalingene on the bonds they already own. This will be about an additional 30 billion Swedish kronor in the course of the next year.
Fears low inflation
Riksbanken point even that the central bank’s expansive monetary policy has received wide attention and pushed down interest rates in the Swedish economy.
“the Monetary policy has in this way contributed to the last years, the positive development with high growth, falling unemployment and increasing inflation. The long-term inflation expectations is also close to two per cent. The already strong konjunkturen implies that there is a good chance that inflation will continue to rise”.
at the same time, there is risk that inflasjonsoppgangen can be disrupted, underlining the central bank.
“the level of Inflation has been lower than expected the last few months and it is still uncertain how quickly it will rise going forward”.
the central Bank points out that there is a danger that svenskekronen be strengthened for the fast forward, which will dampen import prices and the demand for Swedish exports. This will make it more difficult to bring up inflation towards the target.
“For inflation to rise towards the two per cent, monetary policy must in the future continue to be very expansive”, states the press release from the Riksbanken.
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