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Political Economy



Swedish central bank, the Riksbank leave rate unchanged

Wednesday, 17 April 2013
The Swedish central bank or the Riksbank has decided to leave its key interest rate unchanged at 1.0 percent. The Riksbank forecasts show that the rate will not be increased until the second half of 2014.

The bank writes in a statement that growth prospects are gradually brightening, but at the same time the forecast is that it will now take longer before inflation attains the target of 2 per cent. As such the executive Board of the
Riksbank has therefore decided to hold the repo rate unchanged at 1 per cent and to make a downward adjustment to the repo-rate path.

"The repo rate needs to remain at a low level for a longer period of time to support the recovery to ensure that inflation rises towards the target," writes the Riksbank.

Increases in the repo rate are not expected to begin until the second half of 2014.
The global economy is growing at a relatively good pace. The recovery in the US economy is continuing and developments in Asia are strong. At the same time, the euro area is marked by persistent economic crisis. Therefore the bank feels that there is still considerable uncertainty and GDP growth in the euro area is expected to remain weak.
Details about more could read from teh Riksbanks
by Team

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